Bittensor (TAO) Technical Analysis Reveals Critical Demand Zone Fueling $2,000 Rally Potential

Bittensor's chart just flashed a bullish signal that has traders scrambling.

The Demand Zone Defense

A key support area on the TAO chart is holding firm against selling pressure. This isn't just a random bounce—it's a technical confirmation that buyers are aggressively defending a price level they deem critical. When these zones hold, they often act as a launchpad.

The $2,000 Target

The analysis points to a clear path toward the $2,000 mark. That's the upside potential now in play, with the defended demand zone providing the foundation. It's a classic setup: strong support meets pent-up buying momentum, creating a potential springboard effect. Forget the vague promises of traditional finance prospectuses; here, the price action does the talking.

If this level cracks, the narrative changes. But for now, the technicals suggest the machinery for a significant move higher is primed and waiting for the next catalyst.

Higher-Timeframe Reset Defines the Battle Zone

TAO has completed a higher-timeframe reset after a NEAR 200% rally topped around $539. Price corrected roughly 50% from the high and now trades almost 65% below the ATH. This pullback reflects a classic reset phase, where volatility cools and structure stabilizes before the next directional move, rather than signaling trend exhaustion.

A critical make-or-break area is between $262 and $215, corresponding with a 0.618-0.786 Fibonacci retracement and established order block for the bulls. A break above $262 is supportive of accumulation, while a failure below $262 opens up the possibility of $215. A break below $228 indicates a loss of structure.

If the bullish order block is confirmed, the targets for growth remain on track. The initial levels for recovery are around $543, then $725 for Target 1. A breakout allows the targets of Target 2 at $1,200 and Target 3 at $2,000 to be achieved. While alt-season trends are still supportive of such targets, key levels must still be respected.

Momentum Indicators Urge Caution

The weekly RSI is approximately 44, which is below the significant 50 mark, indicating poor momentum. It is not in the oversold area, so it does not provide any indication of a strong purchase signal yet. Furthermore, it is below its moving average, indicating that the purchasing sentiment is weak.

The MACD is still below the zero line, indicating that the larger trend is still bearish. The MACD is below the signal line, with the histogram resuming its negative state. This confirms that the current upward movement of the price is losing strength, with sellers taking progressively more control.