Bittensor (TAO) Bulls Eye $238: Is a Relief Rally Finally Here?

Bittensor's TAO token is testing critical support. The market holds its breath, waiting to see if buyers can finally step in.

The Bullish Case for a Rebound

All eyes are on the $238 price target. It's not just a random number—it represents a key technical level where previous selling pressure could turn into a launchpad. For a relief rally to gain real traction, TAO needs to decisively reclaim this zone and hold it.

What Needs to Happen Next

Momentum indicators are whispering about a potential shift. But whispers aren't enough. The bulls need volume—real, sustained buying interest that cuts through the recent stagnation. Without it, any move higher risks being just another dead-cat bounce, the kind that gets traditional finance analysts excited before they check their screens again.

The path forward is clear: break and hold above the resistance, or risk another leg down. The next few candles will tell the tale.

TAO Price Hits Range Low as Bulls Eye $38 Bounce

Moreover, another crypto analyst, Crypto Tony, revealed that TAO is currently at the lower boundary of its trading range, putting the price at a technically significant support area. There appears to be easing in the selling pressure, and traders are focusing on buying interest. Being a demand zone, the current level is significant for traders in determining the short-term trading direction.

Source: Crypto Tony

Being able to sustain its level in the lower region could enable TAO to establish a relief bounce, with analysts expecting it to rise towards the $38 region. The relief bounce could be fueled by dip buyers and short covering. Breaching the level will raise possibilities of further falls, thus lowering market sentiments in the future.

Technical Outlook Hints at a Neutral to Bullish Setup

Technically, TAO has been trending downwards from the 260s before stabilizing around the 215-225 mark. The current price is around the Bollinger Band midpoint after the rebound from the lower band. The tightening bands indicate that the volatility level is compressing. The level of resistance is standing at 226-227, with the support around 213-215.

Source: TradingView

The momentum indicators display a neutral to slightly positive outlook. The fact that the RSI is at 51, above the middle line, indicates that the momentum is improving without the possibility of an overbought environment. The MACD histogram is still positive, with the lines converging in an upward manner, implying a bounce. A breakout above 226 is required to maintain an upside trend, while a breach of 215 will cancel the positive outlook.

Also Read: Bittensor (TAO) Price Forecast: Weekly Support Zone Could Trigger $450 Rally