Bittensor (TAO) Demonstrates Resilience, Whale Accumulation Signals Bullish Momentum

AI token Bittensor (TAO) has shown impressive resilience amid recent market fluctuations. Despite reaching an all-time high of $777 in April 2024, following a massive 2,700% surge in less than a year, TAO faced significant corrections. However, its rapid recovery signals strong investor confidence.

With the recent release of the Dynamic Bittensor whitepaper, bullish sentiment has been reignited, pushing the price upward and reclaiming key support levels.

According to analyst CW8900, large investors were aggressively buying into Bittensor long positions, even as the price declined. This buying pressure has contributed to TAO’s rapid recovery, outpacing most other projects in the AI token sector.

The current market movement aligns with a cup-and-handle pattern, which typically signals a potential breakout. If the pattern completes, a significant bullish phase could emerge, reinforcing optimism for an extended uptrend.

Whales were quick to buy long positions in $TAO even during the downtrend.

And the price recovery of $TAO is faster than any other project.

The cup and handle pattern is coming to completion.

The real bull market is about to begin.

The Bittensor team introduced the Dynamic TAO (dTAO) whitepaper on February 3, outlining a transformative upgrade to the current emission model. This new approach does away with fixed emissions, introducing a market-driven mechanism that will allow subnets to operate more efficiently.

The introduction of subnet tokens will enable miners, validators, and subnet owners to earn rewards based on staking activity, decentralizing decision-making and reducing central control.

Bittensor enthusiast Dread Bongo highlighted key benefits of the upgrade, which include minimized validator handouts, independent subnet economies, and permissionless scaling. This shift is expected to enhance network sustainability while providing greater incentives for active participants.

Over the past 24 hours, TAO has experienced a sharp uptrend, rising by 17.07% to reach $371.13. The price initially spiked from $315 to $380, reflecting strong buying momentum.

Following this rally, the asset consolidated, suggesting that traders are assessing the next move. Minor pullbacks occurred around $360, but strong buying interest helped maintain price stability.

Key support levels to watch include $315, which marks the start of the recent uptrend, and $360, where intraday pullbacks found stability. On the resistance side, $380 remains a critical barrier, having been tested multiple times.

If bullish momentum persists, the next major hurdle will be $400, a psychological threshold that could trigger profit-taking.

Despite the price rebound, technical indicators suggest caution. The Relative Strength Index (RSI) stands at 40.51, indicating that bearish momentum still dominates.

Although not yet in oversold territory, the RSI suggests potential for further downside before a strong reversal occurs. Moreover, the Moving Average Convergence Divergence (MACD) remains in negative territory, reinforcing bearish sentiment.