Bittensor’s token TAO trades around $198 as it edges toward a key support level at $182.5, marking a slowdown in its recent downward trend. Since peaking close to $292 in late June, each dip has been less steep, forming a falling wedge pattern often signaling weakening selling pressure.
The defense of $182.5 multiple times since January has made it a key structural base, while the inability to surpass $244.7 has kept bears somewhat in control. However, momentum indicators are shifting: the RSI bounced back to 45, and the MACD histogram turned slightly positive, hinting that selling intensity is fading despite low trading volumes compared to the mid-July crash.
Bittensor’s recent protocol upgrades add a fresh catalyst. The new conviction mechanism incentivizes users to lock TAO tokens longer, rewarding sustained participation and allowing new challengers to replace inactive subnet owners after a year. also Spec 437 lowers miners’ entry costs by partially locking registration fees rather than burning them, encouraging ongoing activity while deterring short-term speculation.
If these changes boost demand enough to push TAO over the $205-220 resistance zone, a breakout above $244.7 could accelerate a bullish reversal aiming back toward last month’s peak near $292. Conversely, falling below $182.5 risks reviving bearish momentum down to the February low near $150.
This article provides information only and is not financial advice.
