Bittensor [TAO] broke past a strong resistance level in early September after months of consolidation, driven by a spike in trading volume that pushed the price above a former resistance area at approximately $255. The token had hovered around $215 through most of August and early September, indicating that buyers were absorbing selling pressure.
In mid-September, increased volume allowed TAO to surge past $255, demonstrating stronger demand. The $255 area, previously a point of resistance, became a new area of support after the breakout. The surge ultimately led to a run-up toward $340 before buyer pressure waned and sellers took over.
Due to profit-taking, TAO appears to be trending downward, and bullish momentum is weakening. As of writing, the token was trading near $265, with the $252–$255 zone becoming critical. Holding this area would show buyers are still defending the breakout, potentially creating a base for recovery. However, losing it would invalidate that support shift, expose the failed breakout, and increase the risk of further declines.
TAO’s rally weakens as sellers take control
The weakening momentum near $340 marked the start of distribution, as buyers struggled to sustain TAO’s final advance. A bearish divergence demonstrated that demand was decreasing even as prices increased, leaving the rally vulnerable to selling.
When TAO declined below its ascending trend line, it indicated that buyers lost short-term momentum. Trading below $300 represented a structural change from accumulation to distribution. The failure of each rebound attempt to push above $300 and $315 indicated that sellers were beginning to leave positions at lower prices. Overhead supply combined with decreased trading volume restricted potential rebounds.
Buyers need more than support alone to establish a reversal. If TAO breaks the string of lower highs by moving above $280, it would represent an opportunity for buyers to regain some lost ground. Reclaiming $300 with increasing volume would provide solid evidence that buyers are attempting a successful reversal and clear a path toward $320 and $340. These areas would demonstrate whether buyers can recover from previous losses or simply create a temporary bounce. Conversely, a four-hour close below $252 would expose $215, putting the September rally at risk of a full retracement.
Final Summary
Bittensor faces continued downside risk after its rally to $340 weakened and sellers regained control. TAO needs to defend $252–$255 and reclaim $300 to strengthen recovery prospects.
