Bittensor’s native token TAO is beginning to flash early signs of a major bullish reversal after months of sustained downside pressure. For several weeks, TAO had been stuck in a brutal downtrend, consistently forming lower highs and lower lows. However, a significant shift may now be underway. The token recently printed its first decisive break above a major lower high, suggesting that bears may be losing control of the market. This could open the door for a much-anticipated 200% rally — but one key confirmation remains before buyers can fully take the reins.
At present, TAO is trading in a critical technical zone where multiple indicators converge. Specifically, it is testing the 0.618 Fibonacci retracement level — a pivotal point that often acts as a magnet for price in strong markets. Simultaneously, TAO is interacting with the anchored VWAP drawn from the top of its downtrend, a tool frequently used to measure fair value. Adding even further weight to this region, the Point of Control (POC) — the price level with the highest volume traded — also coincides here.
This powerful confluence of indicators makes the current zone a major battleground for bulls and bears. If buyers can successfully defend this level and establish a confirmed higher low, the path toward a substantial breakout becomes much clearer. A validated higher low here would provide the structural foundation for a bullish Wave 3 impulse, one that could realistically drive TAO back toward its previous range highs — a move that would amount to an approximate 200% gain from current levels.
Bittensor Bulls Defend Critical Support as Range Structure Holds
Looking at the macro view, TAO remains within a broad sideways accumulation range that has been developing for several months. While the downtrend dominated much of the recent price action, the broader range boundaries have held relatively firm. The recent bounce off the lower boundary of the range, combined with the aggressive move higher through a key lower high, suggests that buyers are finally stepping in with conviction.
This range behavior is important: in accumulation phases, assets often experience long periods of sideways chop before a sudden expansion phase begins. TAO’s recent price behavior fits this blueprint, and if the confluence zone around the 0.618 Fibonacci and POC holds, the setup for a major range expansion becomes increasingly favorable.
Volume analysis adds further context to this bullish argument. The recent surge higher was supported by increasing volume, suggesting real demand rather than just a technical squeeze. If price can consolidate above the POC and maintain strong volume inflows, the probability of a full rotation toward the top of the range strengthens substantially.
However, caution is still warranted. Failure to hold the current zone could see TAO trapped in further consolidation or even a deeper retrace toward previous support levels. That’s why the coming days are critical: confirmation through a clean higher low, sustained buying interest, and continued structural strength are essential for the bullish scenario to fully activate.
Ultimately, TAO sits at a pivotal inflection point. If buyers succeed in defending the current zone and building a base, a rapid and powerful continuation move could follow — offering one of the cleanest and most attractive technical setups across the altcoin landscape today.
