• TAO dips 1.66% daily but holds a 2.35% weekly gain.
• Price consolidates near $325 with strong $300–$320 support.
• The Bullish pennant hints at a potential breakout above $345–$355.
• Momentum indicators show fading bearish strength.

Bittensor (TAO) continues to face mild downward pressure as short-term traders take profits while long-term investors stay confident. The token slipped by 1.66% over the last 24 hours, yet it still holds a weekly gain of 2.35%.

At press time, the token is trading at $325.71 with a 24-hour volume of $131.33 million, marking an 8.15% decline in activity. Its market capitalization stands at $3.27 billion, down 1.8% in the same period.

TAO’s recent performance reflects healthy consolidation rather than a bearish reversal. The token continues building a strong base between $300 and $320, where demand has repeatedly absorbed selling pressure. This accumulation range reinforces stability and signals that investors are positioning for the next upward leg.

Also Read: Bittensor Price Analysis: Can TAO Break Past $315 and Target $590?

TAO Resistance Retest Signals Momentum Build-Up

A crypto analyst highlighted that TAO reveals a bullish pennant formation on the weekly timeframe, developing just below the 0.618 Fibonacci retracement level. This setup often precedes a breakout after a period of tightening price action. A decisive move above the descending trendline resistance around $345–$355 could confirm the breakout and trigger a renewed rally.

Once TAO breaks above this zone, the next resistance is expected around $440–$480, aligning with historical pivot levels. The price compression and reduced volatility further support the likelihood of an imminent upward breakout. Liquidity remains thin up to the $700 mark, aligning with the first major target identified by analysts.

Analysts believe that a successful break could stretch into $700, $800, and possibly $900, in accordance with key psychological tops. Since TAO remains in possession of the $300 support figure, the larger bull environment stays in force.

Indicators Point Toward Stabilizing Momentum

Momentum indicators show mixed but improving signals. Currently, the Relative Strength Index (RSI) is at 46.53, slightly lower than neutral, indicating minimal directional strength. RSI is rangebound, and that suggests traders wait for affirmation before entering for larger positions.

At the same time, the MACD indicator is still mildly bearish with the MACD line lower than the signal line. However, narrowing histogram bars suggests dissipating selling pressure. This is a common pattern that can lead to a bullish crossover if buying volume increases. If this momentum shift continues,  then TAO is poised to seal a trend reversal and break into its next significant higher leg.

Also Read: Bittensor Price Analysis: TAO Eyes $560 Target Amid Market Pressure