Grayscale filing and AI fund launch — Bittensor price slips 15% amid high volatility

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Bittensor drops 15.14% today to $394.70

Highlights

Bittensor (TAO) trades at $394.70, maintaining a bullish structure above the MA-20 ($338.70), MA-50 ($335.17), and MA-200 ($353.17) on the daily chart.
Grayscale filed with the SEC to launch a Bittensor Trust on October 10, 2025, signaling increasing institutional interest alongside Barry Silbert's AI-focused asset manager initiative.
Despite bullish longer-term momentum, TAO dropped $70.40 (15.14%) since the previous close amid high intraday volatility, with indicators diverging between pressure and supportive price levels.

Institutional demand grows as Grayscale files for Bittensor Trust

Grayscale filed with the SEC to launch a Bittensor Trust on October 10, 2025, providing institutional investors with indirect exposure to TAO. This move follows Barry Silbert's announcement of a new asset manager focused on AI infrastructure projects using Bittensor technology, highlighting growing interest from large players. The network is also seeing increased institutional attention ahead of its upcoming halving event.

Intraday sell momentum emerges as volatility diverges from bullish trend

On the intraday side, momentum signals are mixed: the MACD and ADX indicate buying strength, but overbought and selling pressure appear in Stoch RSI, CCI, and multiple shorter-term timeframes. The RSI hovers at 62.94, close to overbought, while BBP reads neutral, suggesting neither buyers nor sellers overwhelmingly dominate intraday flows. The Awesome Oscillator signals a strong sell, which amplifies the current downward daily movement, as the price dropped $70.40 or 15.14% since the previous close, opening with a significant gap and sliding to the session's low. Intraday volatility is high, the tone is one of pressure after the open, and daily indicators contradict the generally bullish momentum backdrop, highlighting strong divergence.

Upside favored as rangebound trade expected barring key technical break

For the coming five trading days, the expected price range is $401.40 to $406.50. The probability of a price increase is very high (more than 80%), making a decline less likely. The baseline scenario is that TAO trades sideways between short-term support near $390.00 and resistance above $400.00. In a bullish scenario, a move above $406.50 would open room for further upside. In a bearish scenario, a break below $389.22 (weekly MA-50) might expose deeper pullbacks toward the $350.00 area.

Viktoras Karapetjanc, expert at Traders Union, sees Bittensor (TAO) as fundamentally strong, supported by significant institutional attention, especially following Grayscale's SEC filing and the upcoming halving event. He believes that despite short-term volatility and intraday pressure, the macro and sentiment backdrop remains favorable, with technical momentum aligning on all major timeframes. Karapetjanc expects the bullish structure to prevail in the coming days, with a high probability for further upside as long as key support levels hold. "Given robust institutional interest and solid fundamentals, I see TAO well-positioned for another leg up, provided it maintains support above $390.00," he notes.

Previously, it was noted that whale accumulation, strong staking rates, and expansion in Bittensor's subnets supported positive market sentiment. Last time we reported that speculative flows in related assets increased as liquidity deepened on centralized venues.

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.