Bittensor (TAO) eyes $241 as AI-token bounce tests bearish trend
Bittensor (TAO) has rallied ~30.9% since 12 February amid a short-lived recovery in the struggling crypto AI sector, which lost about 30.3% of market cap over the past month to $14.66 billion. TAO’s 1-day chart remains structurally bearish after a strong impulse decline in 2026, but short-term indicators (MACD, OBV bounce, moving averages) show a temporary uptick. Technical targets: $241.4 and $268.2 (Fibonacci retracements); a daily close above January high $302.4 would be required to flip the daily swing bullish. Short-term support/supply: local supply at $202 swept; H4 imbalances around $170 aligned with 20- and 50-period MAs suggest a possible pullback to $165–$175 to fill liquidity before any move higher. The report cautions TAO’s long-term trend remains bearish and upside depends on Bitcoin avoiding a sell-off. (Keywords: Bittensor, TAO, AI crypto, TAO price targets, Fibonacci, technical analysis.)
Neutral
The article describes a strong short-term rally in TAO (~30.9%) within a longer-term bearish market structure. Key technical evidence tempers bullish enthusiasm: daily swing remains bearish, MACD and moving averages reflect prior downward momentum, and a decisive bullish flip would require a daily close above $302.4. At the same time, short-term indicators and sector rotation into altcoins have produced meaningful gains and defined near-term Fibonacci targets at $241.4 and $268.2. The likely scenario is heightened volatility: an initial pullback to fill H4 imbalance near $165–$175 followed by a possible retest of $241–$268 if Bitcoin holds and sector sentiment improves. This warrants a neutral classification — the move is a bounce within a downtrend, not yet a confirmed reversal. Traders should treat positions as short-term trades: look for confirmation (daily close above $302 or sustained volume/OBV improvement) before taking longer-term bullish exposure; manage risk with tight stops given likely swings. Historical parallels include previous AI/altcoin bounces that retraced most gains when macro/BTC sentiment flipped, underlining the need for confirmation before assuming trend reversal.