TAO news: weekly bullish engulfing pattern signals positive momentum ahead of major token unlock

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Bittensor Surges 7.10% Today

Highlights

Bittensor (TAO) trades at $353, above the MA-20 ($320) and MA-50 ($331.14), but just above MA-200 ($349.44), indicating a short- to medium-term bullish trend with long-term resistance.
A major token unlock on October 12, 2025, will release about $1 billion worth of TAO to early contributors, likely increasing volatility and supply risks.
Technical indicators reflect mixed momentum—RSI nearly 71, CCI above 100, and MACD on sell—while price remains range-bound between $331 support and $360 resistance, with a five-day range projected at $370.70–$388.10.

Token unlock risk elevates volatility ahead of strong technical breakout

A major upcoming token unlock is set to release about $1 billion worth of TAO tokens to early contributors on October 12, 2025, which may create volatility and affect the token's supply. Market activity has been elevated, with trading ranging between $324 and $365 in the past month. Technicals recently showed a bullish engulfing pattern on the weekly chart, suggesting positive momentum ahead of this significant event.

Mixed momentum signals as overbought readings meet key technical levels

Dynamic support is established near Kijun and MA-50 in the $331 – $331.14 area, with the next resistance potentially forming near the $360 round level. Momentum signals are mixed on the daily chart, with the MACD showing a strong sell and the ADX suggesting a sell bias, while the RSI at nearly 71 and CCI above 100 both indicate overbought territory. Stoch RSI also signals overbought, and Bull/Bear Power on D1 is neutral, pointing to a tug-of-war between buyers and sellers in the very short term. The Awesome Oscillator, however, shows a buy signal in support of the ongoing short-term trend.

Sideways bias dominates as breakout risk increases at key thresholds

The expected range for the next five trading days is between $370.70 and $388.10. There is a roughly equal 50% chance of further price gains or a pullback, with the base scenario favoring continued sideways action between support at $331 and resistance near $360. A clear break above $360 could open upside toward the $370 – $388 area, while a fall below $331 would increase the likelihood of a corrective move toward longer-term averages.

Viktoras Karapetjanc, expert at Traders Union, sees constructive momentum in Bittensor (TAO), with prices holding above key moving averages and strong technical signals despite looming supply events. He believes the macro and sentiment backdrop, driven by anticipation of next year's major unlock, is fueling volatility but also attracting active trading interest. The analyst notes that although short-term indicators reflect overbought conditions, structural support and recent bullish patterns suggest the market remains poised for further gains if resistance is cleared. "As long as TAO stays above $331 and sentiment holds steady, I am confident in the bullish outlook with upside potential toward the $370–$388 range in the near term."

Last time we reported that Plasma (XPL) saw speculative flows increase as liquidity deepened on centralized venues. The previous article also noted that buyers pointed to improving order book depth and recurring squeeze dynamics following each dip.

Source of Data: TAO Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.