The cryptocurrency market has shown a slight recovery from last week’s volatility that pushed Ethereum (ETH) to a low of $3,839 before rebounding to near $4,175. Both Bitcoin (BTC) and Ethereum (ETH) are up by nearly 1% today, easing bearish pressure and lifting upside sentiment in several altcoins, including Bittensor (TAO).
TAO is back in green today with modest gains, and more importantly, the price action is signaling the development of a bullish reversal pattern that could shape the token’s next major move.
Falling Wedge Pattern in Play
On the daily chart, TAO is forming a falling wedge, a technical setup that often signals selling exhaustion and the possibility of an upside reversal.
The most recent correction drove TAO down to the wedge’s lower boundary near $290, which has acted as a strong support level in recent trading sessions. From this base, the token has bounced to around $306.87, but it will face the challenge of reclaiming the 200-day moving average (MA) at $345.85, a level that has been a key resistance zone for bulls.
A decisive break above this MA could confirm renewed bullish momentum.
What’s Next for TAO?
If TAO manages to hold its support and close convincingly above the 200-day MA, the next logical move would be toward the wedge’s upper resistance trendline. A successful breakout and retest of this level could pave the way for further upside, with a potential price target above $515.
However, if TAO fails to overcome the resistance and faces rejection, the token could revisit the wedge’s lower support before bulls attempt another push higher.
For now, the falling wedge structure suggests TAO is at a make-or-break moment — either on the verge of a bullish breakout or preparing for one more test of its support zone.