Bittensor (TAO) price posted a strong move over the past few hours, climbing nearly 8% to test a key resistance near $350. However, sellers quickly stepped in, capping the rally and pulling the price back toward $335. While the structure remains clean and momentum appears strong, this is not a confirmed breakout—TAO is still testing a major supply zone, leaving the rally vulnerable.
The key question now is whether bulls can sustain this momentum, as a move toward $400 hinges on a decisive break above this resistance.
Open Interest Trend Signals Caution
TAO’s Open Interest has surged sharply alongside the recent price rally, highlighting a strong influx of market participation. The metric climbed from roughly $150M to over $550M during the move, reflecting aggressive positioning as the price pushed higher. However, the trend did not sustain, with OI pulling back and stabilizing near $380M–$400M, even as price continues to hold elevated levels.
This divergence is important. While the initial spike confirms strong interest, the decline suggests that positions are now being closed or unwound rather than added. In strong trends, a rising price is typically supported by rising OI. Here, the cooling OI indicates that the rally may have been driven by short covering and leveraged trades, not consistent spot demand. Unless Open Interest begins to expand again with price, the current move risks losing momentum near resistance.
TAO Price Action Approaches Key Supply Zone
Bittensor (TAO) has delivered a strong recovery, climbing from sub-$200 levels to now trade around $335–$340, reclaiming multiple key zones along the way. The price has formed a clear higher low–higher high structure, with consolidation bases around $260 and $300, indicating controlled accumulation rather than a random spike.
However, the rally is now approaching a major resistance zone between $350 and $380, which aligns with a previous breakdown area. This makes it a high-pressure zone where sellers are likely to step in again.
While price action remains constructive, the indicators show a different picture:
- CMF remains negative (~ -0.17) → capital outflows persist
- MACD is flattening after a bullish crossover → momentum is slowing
- Price is rising, but buying pressure is not increasing proportionally
This creates a critical divergence as the structure is bullish, but the underlying strength is weak. In strong rallies, money flow supports price. Here, it doesn’t, which increases the risk of rejection near resistance.
Key Levels to Watch
- Immediate Resistance: $350–$360
- Breakout Confirmation: Sustained move above $380
- Upside Targets: $400 → $468
- Immediate Support: $330
- Breakdown Level: Below $330
- Downside Targets: $300 → $260
TAO at Decision Point—Breakout or Rejection?
Bittensor (TAO) price is testing a high-pressure zone near $350–$360, where momentum needs confirmation. The structure is bullish, but weakening money flow and cooling OI suggest caution. A clean break above $380 can extend the rally toward $400 and $468. However, failure to clear resistance increases the risk of a pullback, with $300 and $260 as key downside levels.
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