Date: Fri, May 23, 2025 | 10:30 AM GMT
The cryptocurrency market has mounted a solid comeback in recent weeks from its bearish Q1. Bitcoin (BTC) has managed to melt faces with its new all-time high of $111,970, while the impressive 48% monthly jump of Ethereum (ETH) is uplifting sentiment across altcoins — including Bittensor (TAO).
The AI token has surged over 40% in the last month, and the charts suggest it might not be done yet. Technical analysis points to a potential major breakout forming on the horizon.
Cup and Handle in Play
On the daily chart, TAO is flashing a textbook Cup and Handle pattern — a classic structure often seen ahead of strong bullish breakouts.
The “cup” portion formed between late February and early May, beginning with a sharp rejection from the $500 level and bottoming out at approximately $166. Since then, TAO has steadily rebounded, creating a rounded bottom formation that laid the groundwork for a bullish setup.
The pullback from recent highs formed a brief consolidation near the $387 level, which also coincides with the 100-day moving average — serving as a crucial support. This created the “handle” portion of the pattern, often seen before a breakout attempt.
Currently, TAO is knocking on the door of its key neckline resistance at $470–$500, a zone it has failed to clear multiple times in recent months. As of writing, TAO is trading around $468, just beneath this critical breakout point.
What Next for TAO?
A clean breakout above $500, particularly if followed by a successful retest, would validate the Cup and Handle pattern and open the gates to a strong upside move.
If confirmed, the immediate upside target is around $745, with the pattern’s projected price objective at $834 — a potential 77% gain from current levels.
Adding more fuel to the fire, the broader market outlook remains bullish. Ethereum is nearing a breakout above the $2,700 resistance level, and a move higher could further ignite momentum across altcoins, particularly those in the AI sector like TAO. Historically, ETH-led rallies have often sparked capital rotations into high-potential altcoins.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.
The opinions and market insights shared on CoinsProbe represent the views of individual authors based on prevailing market conditions at the time of publication. Cryptocurrency investments carry significant risk and volatility. Readers are encouraged to conduct their own research and seek professional financial advice before making investment decisions. CoinsProbe and its contributors do not accept responsibility for financial losses or decisions made based on published content.
CoinsProbe may publish sponsored articles, affiliate links, or promotional collaborations. All sponsored material is clearly labeled to maintain transparency with our audience. Our editorial decisions remain fully independent, and advertising partnerships do not influence reviews, rankings, or published opinions.
Since 2023, CoinsProbe has delivered reliable insights on cryptocurrency, blockchain, and digital assets. Our content is created by experienced researchers and analysts who follow strict editorial standards focused on accuracy, transparency, and credibility. Every article is carefully reviewed and verified using trusted sources and current market data. We provide unbiased analysis and timely updates covering everything from emerging crypto projects to major industry developments.
