+7.77% for TAO — heavy trading drives bounce despite continued bearish trend

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Bittensor rises 7.77% today

Highlights

Bittensor's 24-hour trading volume surged to $1.5 billion, marking one of its highest levels since early October, per Token Terminal data.
The spike in activity coincided with TAO breaching a multi-month demand zone, signaling a notable shift in trading dynamics.
No new regulatory, institutional, or ecosystem developments have been reported during this volume increase, indicating activity is driven mainly by market participants.

Volume surge and demand zone break reshape trading dynamics

Bittensor recently saw a significant uptick in trading activity, with 24-hour trading volume reaching $1.5 billion — one of the highest levels since early October, according to Token Terminal data. The shift in trading dynamics coincides with a breach of a previously established multi-month demand zone. No new regulatory, institutional, or ecosystem developments have been reported during this period.

Oversold signals persist as resistance holds and rebound stalls

Momentum signals remain weak: the MACD D1 shows a sell bias and is negative, and the ADX D1 is neutral but at a low value, indicating a weak, non-directional trend. Several oscillators flag oversold conditions — RSI D1 is near 30, CCI D1 is sharply negative, and both BBP and Stoch RSI D1 read as oversold, showing sellers still dominate, although intraday BBP has flipped to overbought across shorter timeframes, indicating a bounce attempt. The Awesome Oscillator is negative but not in clear alignment with the current upward daily move. The nearest dynamic resistance is the Ichimoku Kijun at $400.00, while short-term support is found just above $270–$283 based on the cluster of recent lows and the HMA value.

Downside risk favored as indicators show weak recovery prospects

For the next five trading days, the expected range is $260 to $310, reflecting about ±7% volatility from current levels and aligning with recent price dynamics. The probability of a further price increase is very low (less than 20%), given that none of the weekly indicators are in Buy or Strong Buy status, making a further decline much more likely. Baseline scenario: the price consolidates sideways between $260 and $310. A bullish scenario would emerge only if price breaks and holds above the $310–$320 resistance zone, confirming recovery attempts, while a bearish scenario unfolds on a break below $260, opening the door for further declines toward deeper weekly supports.

Viktoras Karapetjanc, expert at Traders Union, sees Bittensor holding under key averages despite a surge in trading volume. He notes that seller momentum, oversold signals, and a recent breakdown of demand all confirm a bearish sentiment, with no positive news or institutional support present. Consolidation between $260 and $310 remains the likely near-term scenario. A sustained move above $310 is needed to shift outlooks. "With fundamentals not improving and sentiment still negative, only a decisive rally above resistance would convince me to turn bullish here."

Last time we reported that TAO was expected to consolidate in the $402.80 to $408.30 range with potential for volatility. Previously, it was noted that the short-term outlook for TAO was described as balanced and momentum indicators remained neutral.

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.