The Bittensor TAO price is navigating one of its most crucial phases, suggesting a substantial bullish move could be on the horizon, potentially impacting the cryptocurrency’s long-term trajectory. After several weeks marked by consolidation and volatility, TAO has recently hinted at a breakout from a descending triangle pattern visible on the weekly Bullish Bittensor price chart.
This week’s price action is especially significant. TAO’s recent attempt to break above the upper limit of the triangle signals a resurgence in momentum. However, the critical question remains: can TAO sustain above this key level until the week’s close? Success here could see short-term targets around $470 becoming attainable, with long-term forecasts pointing towards $770 or more by the end of the quarter.
Bloodbath Before Breakout: A Flushout of Weak Hands
Last week’s intense liquidation event set the stage for TAO’s current recovery. The market witnessed a dramatic sell-off, wiping out long positions across various exchanges, with millions in leveraged trades liquidated in the span of a single day. Retail traders who had placed stop orders above $250 found themselves facing steep losses, while disciplined long-term holders weathered the storm by maintaining stops below $240.
This capitulation phase may have worked in TAO’s favor. The crypto market swiftly absorbed the sell-off, indicating robust institutional demand beneath the surface. What followed was nothing short of remarkable: TAO rebounded from a low of $245, soaring to as high as $429 in mere days, showcasing a swift recovery and creating a tempting opportunity for immediate gains.
Grayscale Trust Filing Becomes Key Catalyst
The catalyst behind this recovery can be traced back to Grayscale’s recent announcement concerning its new Bittensor Trust ($TAO) filing with the SEC. This move represents the first step toward making TAO an SEC-reporting asset, potentially enhancing its transparency and institutional legitimacy. According to the official post from the Opentensor Foundation on X, this filing could significantly boost investor confidence and broader accessibility.
Grayscale plans to publicly list TAO over-the-counter (OTC), reducing the private placement holding period from 12 months to just six. This strategic move enhances liquidity and moves Bittensor closer to being traded as an exchange-traded product (ETP), similar to an ETF, which could open it up to a larger market.
The timing of this announcement was impeccable. It came at a moment when TAO’s chart structure was already hinting at recovery, thereby reinforcing market sentiment and fueling a spectacular 45% intraday surge that pushed prices to $413.95. At present, the cryptocurrency boasts a market cap of $4.17 billion, with 24-hour trading volumes exceeding $582 million, reflecting renewed investor interest and confidence in the project.
If the Bittensor price chart manages to maintain its position above the breakout level, the path toward $470 increasingly appears plausible. For now, the focus remains on whether the Bittensor TAO price can sustain this momentum, transforming this technical breakout into a genuine rally.
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