The price of Bittensor (TAO) is currently navigating a decisive technical phase that could shape its long-term trajectory. After a prolonged consolidation marked by sharp volatility, TAO has sparked fresh bullish sentiment with a breakout attempt from a descending triangle pattern on the weekly price chart. With renewed institutional interest emerging, particularly through Grayscale’s latest trust filing, market watchers are now closely tracking whether TAO can convert this momentum into a sustained rally.

Critical Technical Setup Hints at Bullish Momentum

TAO’s price action this week holds significant weight. The cryptocurrency has attempted to breach the upper resistance line of a descending triangle, a move often interpreted as a bullish reversal signal in technical analysis. However, analysts emphasise that confirmation will only come if TAO maintains a weekly close above this critical level.

Should the breakout sustain, short-term price targets near $470 appear within reach. Beyond that, market optimists suggest that $770 and above could be achievable by the end of this quarter, marking a potential shift from consolidation to a full trend reversal.

Bloodbath Flushes Out Weak Hands Before Rebound

The turnaround story began with an intense liquidation phase last week. The market experienced a steep sell-off, triggering millions in leveraged position wipeouts. Many retail traders, particularly those who placed stop losses just above $250, suffered major setbacks.

In contrast, seasoned holders who positioned their protective stops below $240 managed to remain in the trade and benefited from the rebound that followed.

Interestingly, this aggressive shakeout may have served a purpose. The rapid absorption of sell pressure hinted at strong underlying demand, likely from institutional players positioning ahead of a potential fundamental catalyst. The recovery was swift and aggressive, with TAO surging from $245 to highs of $429 in just a few trading sessions, effectively signalling market resilience.

Grayscale Trust Filing Sparks Institutional Excitement

The key driver behind TAO’s renewed rally came from Grayscale’s official filing for a Bittensor Trust ($TAO) with the U.S. Securities and Exchange Commission (SEC). Publicly shared by the Opentensor Foundation, this development marks a major milestone toward bringing TAO into the regulated investment space.

Grayscale’s strategy aims to position TAO for OTC (over-the-counter) trading, cutting the private placement lock-up period from 12 months to just six. This adjustment could significantly enhance market liquidity and institutional accessibility, putting TAO on a pathway similar to crypto assets that later evolved into exchange-traded products (ETPs).

The timing could not have been more favourable. The announcement aligned perfectly with TAO’s technical recovery, creating a 45% intraday price surge to around $413.95. As of writing, TAO commands a market capitalisation of $4.17 billion with 24-hour trading volume surpassing $582 million, signalling a fresh wave of investor confidence.

Can TAO Maintain Breakout Strength? Key Levels to Watch

While momentum is clearly shifting, sustaining the breakout remains the crucial test. Analysts are now watching whether TAO can hold above the breakout zone through the weekly close. Failure to do so may reintroduce volatility and trap late buyers, whereas a strong close would likely attract trend-following capital and trigger further upside acceleration.

If bullish pressure continues to build, $470 stands as the next significant resistance, acting as a short-term validation point for the rally. Once cleared, sentiment could quickly shift toward higher price projections, laying the foundation for a run toward the $700–$770 region, especially with institutional tailwinds gaining traction.

Outlook: Momentum Builds, but Confirmation Is Key

For now, Bittensor (TAO) sits at a pivotal junction. Technical indicators suggest growing strength, while Grayscale’s involvement introduces a powerful fundamental catalyst. The recent liquidation phase, instead of weakening the market, appears to have cleansed speculative excess and strengthened the asset’s structural base.

As the week progresses, all attention will remain on whether TAO can sustain this breakout structure and officially transition from consolidation into a full-scale bullish trend. With institutional interest rising and technical patterns aligning, Bittensor is positioning itself as one of the most closely watched crypto assets of the quarter.