Market Analysis and Price Prediction
Bittensor’s $TAO is demonstrating resilience amidst the altcoin market downturn, with veteran trader Crypto Tony identifying a potential setup for a significant upward movement. According to his recent analysis, $TAO is poised to retest the $491 breakout support level. Bulls are expected to defend this crucial zone, which could pave the way for a subsequent leg up towards the $720–$850 range.
As of the latest reporting, $TAO is trading at $512, reflecting a 6% decrease over the past 24 hours but still showing a substantial 180% increase from its July low of $185. Crypto Tony's "incredible entry" point was likely identified in the $320–$350 zone during September. At that time, on-chain metrics indicated strong accumulation, with subnet registrations surging by 40%, validator counts reaching 72, and TAO staking APYs exceeding 28%. The recent pullback is attributed to profit-taking following a 60% rally in October, considered a healthy market correction rather than a sign of weakness.
$TAO / $USD – Update
— Crypto Tony (@CryptoTony__) November 1, 2025
Shed some profits to begin with due to our incredible entry, but looking for us to pullback to retest the breakout range at $491. The bulls want to hold this level. pic.twitter.com/ngiNyOwfEt
Technical Indicators and Support Levels
Technical analysis suggests a confluence of factors supporting the bullish outlook. The $491–$505 zone, which previously acted as resistance within a descending wedge pattern and has now transitioned into support, is situated above the 50-day Exponential Moving Average (EMA) of $488 and a rising volume shelf. The Relative Strength Index (RSI) has cooled from an overbought level of 78 to 54, indicating a reset in momentum without exhibiting bearish divergence. This scenario mirrors the price action observed with Solana in 2023, where a retest was followed by a significant price surge.
Crypto Tony's strategy involves accumulating positions in the $491–$505 range, with stop-loss orders placed below $475. The target price range for $TAO is set between $720 and $850, referencing previous cycle highs. The current market conditions are interpreted as a period of consolidation and refueling rather than a market top.
Fundamental Growth and Ecosystem Development
The fundamental growth of Bittensor's ecosystem, particularly its AI subnets, is showing remarkable acceleration. Subnet 1, focused on text prompting, is now handling 1.2 million queries daily, representing a 300% quarter-over-quarter increase. Subnet 19, dedicated to decentralized GPU rendering, has onboarded 8,000 new nodes following the launch of its $2 million incentive pool. The OpenTensor Foundation's commitment to fostering innovation is evident through its $10 million in developer grants for Q4, which are attracting talent from leading AI research institutions.
The total value locked (TVL) in $TAO liquidity pools has reached $1.8 billion, positioning it competitively alongside the early 2024 surge seen on the Arbitrum network. This significant TVL indicates strong investor confidence and active participation within the Bittensor ecosystem.
Market Tailwinds and Supply Dynamics
Several macroeconomic factors are contributing to a positive outlook for $TAO and the broader altcoin market. Bitcoin's historical November seasonality, which has seen an average increase of 42% according to analyst Lark Davis, is expected to lift altcoin prices. Furthermore, reports of a leaked draft executive order from Donald Trump concerning cryptocurrency have injected a risk-on sentiment into the market.
The supply dynamics of $TAO are also a key factor. With a relatively low circulating supply of 6.8 million tokens and a significant 68% of the total supply locked in staking, the potential for a supply shock is high. This scarcity, combined with strong demand, could drive significant price appreciation.
Risk Assessment and Trading Strategy
While the outlook is largely positive, potential risks exist. A breakdown below the $475 level could lead to a further decline towards $420. However, current data indicates that approximately 85% of $TAO holders are in profit, and whale selling activity is diminishing, suggesting that dip-buyers are actively absorbing supply. Nansen's data points to a dominance of accumulation at current price levels.
Crypto Tony's recommended trading strategy involves a phased entry between $491 and $505, with strict risk management via stop-losses below $475. The prevailing sentiment among traders is that the current price action represents a strategic accumulation phase, with calls for $1,000 options contracts reportedly increasing. Crypto Tony's assertion that "Bulls want to hold" underscores the confidence in the $491 support level.