Bittensor (TAO) Bounces Off Key Support — Can This Pattern Trigger Further Gains?

Key Takeaways

• TAO surged ~18% as the broader market bounced.
• Price rebounded strongly from $143, the lower wedge boundary.
• TAO is attempting to recover toward $192, but still sits below the 50-day MA (~$229).
• A breakout above $260 could open the door toward $401.
• Failure at resistance may lead to consolidation before the next major move.

The broader crypto market is finally showing signs of relief after the recent sell-off, with Bitcoin reclaiming the $70,000 level and Ethereum pushing back above $2,100.

Following this bounce, altcoins are also starting to wake up — and Bittensor (TAO) is among today’s stronger performers, jumping roughly 18%. More importantly, TAO’s daily chart is flashing a potentially meaningful bullish setup that could shape the next leg of price action.

Let’s break it down.

Descending Broadening Wedge Pattern in Play

On the daily timeframe, TAO appears to be forming a descending broadening wedge — a classic bullish reversal structure that often develops during prolonged corrective phases.

Price recently swept the lower boundary of the wedge near $143, where buyers stepped in aggressively and defended support. That reaction sparked the current rebound, pushing TAO back toward the $192 zone. While price is still trading below its 50-day moving average near $229, the sharp bounce from the lows hints at a shift in short-term momentum.

This type of move is typical for broadening wedges: sellers gradually lose control near the lower trendline, volatility starts expanding, and price begins rotating higher inside the pattern.

What’s Next for TAO?

If bullish momentum continues, TAO could soon challenge the 50-day moving average, along with the upper wedge resistance, which currently aligns around the $260 region.

A clean breakout from the wedge would strengthen the bullish reversal thesis and likely attract breakout traders. In that scenario, the chart points toward a potential upside target near $401 — a level that stands out as the first major resistance and a key test for any sustained rally.

That said, this remains a technical bounce for now.

If TAO fails to break above the upper wedge boundary, price could slip back into consolidation or attempt another pullback toward mid-range support. A decisive breakdown below the recent swing low would invalidate the bullish structure and tilt momentum back in favor of sellers, delaying any recovery attempt.

Big Picture

With Bitcoin reclaiming $70K and risk appetite slowly returning, TAO’s bounce off key support arrives at an important moment. The descending broadening wedge suggests the token may be entering a volatility expansion phase, where sharper moves — especially to the upside — become more likely.

For now, bulls will be watching closely to see whether TAO can reclaim its 50-day moving average and push through wedge resistance to confirm the reversal. Until then, expect choppy price action — but the technical groundwork for further gains is clearly starting to form.