In the volatile world of cryptocurrency, few narratives capture the imagination like the convergence of artificial intelligence and blockchain. Bittensor’s native token, TAO, is at the forefront of this fusion, powering a decentralized machine learning network that incentivizes collaborative AI development. As we edge closer to TAO’s inaugural halving event, slated for mid-December 2025, prominent analyst Michaël van de Poppe of MN Trading has spotlighted a compelling setup: the token is retesting a robust higher-timeframe support zone, potentially signaling the onset of an impulsive bullish reversal. Van de Poppe’s latest chart analysis on TradingView illustrates TAO/USDT’s price action with crystal clarity.
Why Bittensor’s Halving Is a Game-Changer for AI Tokens
The token has descended into a demand area that has repeatedly acted as a floor over the past year, holding firm during broader market drawdowns. Annotations highlight a critical “break” point where upward momentum could ignite, marked by green volume spikes and a broadening green support band. Currently trading around $309 after a 7.4% dip, TAO mirrors patterns seen in Bitcoin’s pre-halving consolidations—temporary negativity driven by profit-taking and liquidity hunts, but underpinned by structural strength. At its core, Bittensor’s halving mechanism echoes Bitcoin’s scarcity playbook. Daily TAO emissions will slash from 7,200 to 3,600 tokens, tightening supply while demand from AI subnet builders and validators surges.
On-Chain Strength: Staking, Active Users, and Subnet Growth
This event isn’t just a technical footnote; it’s a catalyst for revaluing TAO as the “Bitcoin of Intelligence.” With over 128 active subnets fostering innovations in natural language processing, predictive modeling, and beyond, the ecosystem’s real-world utility is accelerating. Projects like decentralized image generation and sentiment analysis tools are already live, drawing in developers and enterprises seeking censorship-resistant AI alternatives to centralized giants like OpenAI. Market sentiment echoes this optimism. Despite the short-term pressure—TAO down 13% in the past week amid broader altcoin weakness—on-chain metrics paint a resilient picture.
Active addresses have climbed 15% month-over-month, and staking participation hovers near 70% of circulating supply, locking up tokens and reducing sell pressure. Post-halving, historical precedents in proof-of-work networks suggest a supply shock that could propel TAO toward its all-time high of $750, or even uncharted territory if AI hype sustains.
Risk Levels, Invalidations, and Key Price Targets
For investors, this dip isn’t a red flag but a green light. As van de Poppe notes, once the halving dust settles, TAO re-enters “buy the dip” territory with vengeance. In a landscape where AI tokens like FET and AGIX have multiplied valuations, TAO’s unique incentive alignment positions it for outsized gains. Whether you’re a HODLer eyeing long-term AI dominance or a trader scalping the breakout, the setup screams opportunity. With the halving just two weeks away, positioning now could yield exponential rewards in the decentralized intelligence revolution.