In recent months, the crypto market has been following the AI-powered token Bittensor (TAO), which presents both optimism and caution among investors.

Recent Performance and Market Sentiment

TAO surged by an impressive 55% over the past month. This rally aligns with the growing interest in AI blockchain projects. Recently, Grayscale increased its allocation of TAO, indicating rising confidence in the project. However, despite this, TAO has pulled back to $568.45, raising questions about the temporary nature of this decline.

Technical Analysis

Currently, TAO’s price action has formed an upsloping flag pattern, often seen before major breakouts. The token has repeatedly bounced off its trendline support and is currently trading exactly at its support level around $560. If this level holds, a rise to $740 is possible.

What to Expect Next?

A bullish scenario is possible: if the $560 support holds, it could trigger renewed buying interest. If the trendline breaks, a decline below $500 might occur. Traders are closely watching for current market shifts.

TAO traders are watching closely to see if the support holds, determining the future course in the market.