Bittensor (TAO) price recently pushed above the key $200 level, signalling renewed bullish momentum after weeks of consolidation. However, the breakout quickly attracted selling pressure, pulling the token back below the psychological threshold and triggering a short-term correction. The move highlights how closely traders are watching this zone as a critical decision level.
Despite the pullback, TAO continues to trade within a broader bullish structure on the higher timeframe. The recent dip appears more like a controlled retracement rather than a full trend reversal. If buyers manage to defend nearby support and reclaim $200 with strength, the correction could soon fade, opening the path for a fresh attempt toward higher resistance levels in the coming sessions.
Will Bittensor Price Trigger a V-Shaped Recovery?
TAO remains in a clear downtrend, forming consistent lower highs since the November peak near $500. The descending trendline continues to cap upside attempts, while the 200-day SMA sits much higher around the $310 region, confirming that the broader trend remains bearish.
The recent rally toward $200 marks the first meaningful bounce after a sharp capitulation-style drop. However, price is still trading below the descending trendline, the 200-day SMA and the major horizontal resistance zone near $220, keeping the higher-timeframe structure cautious.
The MACD is showing early signs of a bullish crossover from deeply negative territory. Histogram bars are shrinking, suggesting bearish momentum is weakening. This often precedes a relief rally or short-term trend reversal. Volume expanded during the recent bounce, indicating genuine buying interest rather than a weak dead-cat bounce. However, sustained upside requires continued volume expansion on breakout attempts.
$200 can be considered as a psychological level that may further push the rally towards the demand zone between $220 and $230, if secured in time. Although the pivotal resistance zone around $300 is distant, the price range between $120 and $217 may act as a strong base and trigger a strong upswing.
Can the Bittensor (TAO) Price Reach $500?
The Bittensor price is displaying strength, but a weekly close above $200 is mandatory to keep up the bullish trend. With this, the rally may enter the bullish range, raising the possibility of a V-shaped recovery to the neckline around $300. Only a sustained rise above this range may increase the possibility of a strong upswing to $500; otherwise, the TAO price may remain consolidated below the range until the required volume kicks in.