TAO breaks out of its descending channel, but rejection at $215 keeps the uptrend fragile | Credit: Hameem Sarwar
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Key Takeaways
TAO has exited a descending channel, signaling a shift from correction to early reversal conditions.
Momentum indicators lean bullish, but an extended move upward will depend on key resistance.
Holding $180 keeps the breakout valid, but reclaiming the 0.236 Fib level would strengthen bullish bias.
Bittensor (TAO) has surged roughly 20% over the past week, breaking out of a multi-week corrective phase and forcing traders to reassess its short-term trajectory.
The rally follows a prolonged stretch of lower highs and fading momentum.
With TAO’s price now hovering around $192.19, the altcoin is attempting to stabilize above key breakout levels.
The focus has shifted from whether the move was real to whether it can sustain momentum and extend higher. Let’s evaluate it.
Buyers Drive Momentum Higher
TAO is already showing early signs of strength, suggesting further price continuation. On the 4-hour chart, the Relative Strength Index (RSI) supports this bullish outlook.
The altcoin remains below overbought conditions at around 66.22, indicating that buyers are actively stepping in without exhausting momentum.
The Awesome Oscillator (AO) reinforces this view, showing TAO in positive territory, with green histogram bars indicating growing bullish momentum.
Its sustained position above the zero line reflects stronger market participation on the buy side, which typically aligns with trend continuation rather than short-lived relief rallies.
For the rally to remain technically valid, TAO’s price must hold above the $180 support zone established after the breakout.
Besides that, Upbit has announced that it has listed the altcoin.
“New Digital Asset Bittensor (TAO) Trading Support Announcement Supported Markets: KRW, BTC, USDT Markets Trading Support Start Time: Scheduled for 2026-02-16 16:00 KST,” The crypto exchange revealed.
In most cases, an Upbit listing triggers a double-digit price surge for the crypto. But for TAO, that is not the case.
TAO Price Analysis: Breakout Yet Fragile
On the daily timeframe, TAO has broken out of its descending channel. Previously, this structure had limited price action amid weeks of lower highs and steady compression.
This breakout indicates a shift in market tone, with sellers losing grip and buyers beginning to regain short-term control.
The move is supported by the Bull Bear Power B(BP) indicator, which has flipped into positive territory with consecutive green histogram bars.
This suggests that buying pressure is strengthening, providing real support rather than a random spike.
However, the picture is not fully aligned.
The Awesome Oscillator (AO) remains below the zero line, even as it prints green bars, showing that momentum is improving but has not fully turned bullish.
Adding to caution, TAO faced rejection at the $215.41 resistance zone. However, that region now acts as the immediate barrier between a confirmed continuation and another stalled advance.
While still trading below the 0.236 Fibonacci retracement level, TAO’s price has yet to reclaim a key technical threshold that would solidify the bullish case.
Staying under this level indicates the breakout remains in its early phase and has not completely invalidated the broader corrective structure.
A close above both $215.41 and the 0.236 Fib would tilt the outlook more clearly toward continuation above $242.31.
However, failure to do so leaves the risk of consolidation or a pullback towards the zero Fib level at $147.52 if momentum indicators stall before turning fully positive.
Discounted Entry Under $200?
In the meantime, some analysts suggest that TAO’s current valuation offers a strategic accumulation opportunity as the network expands its real-world utility.
One of them is Crypto analyst “2xNmore,” who highlighted the growth from 128 to 256 subnets and the increase in activity across storage, security audits, GPU rentals, and brand verification as evidence of tangible infrastructure development rather than hype.
“If you’re ignoring $TAO under $200, you’re early and don’t even know it,” The analyst wrote, framing the recent pullback as a discounted entry rather than a structural breakdown.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
