Bittensor (TAO) has seen a remarkable surge of up to 33% following Grayscale’s recent submission of Form 10 to the U.S. Securities and Exchange Commission for the establishment of the Grayscale Bittensor Trust.
Should this filing receive approval, the trust will be required to report akin to public companies (10-K/10-Q reports with audited financial statements), which would not only shorten private placement lockup periods from 12 months to 6 months but also facilitate an OTC quotation. This strategy mirrors Grayscale’s approach with Bitcoin and Ethereum.
For TAO, the timing is critical. It resides at the intersection of two burgeoning narratives: decentralized artificial intelligence and institutional cryptocurrency. Streamlined regulations could funnel new liquidity into TAO, ensuring its credibility for treasuries, investment funds, and Registered Investment Advisors (RIAs) looking to gain exposure to on-chain AI infrastructure without the hassle of custody issues.
Bittensor (TAO) Price Dynamics: Key Levels, Trends, and Future Outlook
From a technical perspective, TAO has made a significant recovery from the $315 support level, bouncing just above the 38.2% Fibonacci retracement at $307. It is currently trading above $410, marking its highest point in weeks. The breakout above $327 and $405 signals a departure from the long-term falling wedge formation, indicating bullish momentum.
Key momentum indicators bolster this outlook: the Relative Strength Index (RSI) has rallied from the low 40s into bullish territory without showing signs of fatigue. Additionally, the Moving Average Convergence Divergence (MACD) has turned positive after several weeks of inactivity, suggesting that further upside is likely.
While spot trading volume has sharply increased, open interest remains relatively low. This indicates that the current rally is mainly fueled by spot market activity, which presents a healthy landscape for potential gains, especially if sidelined traders begin to enter the market.
Current support levels are positioned at $380, $355, and $327. Maintaining levels above $405 may set the stage for a possible surge toward $500 in forthcoming trading sessions.
Institutional Interest Grows as AI Narrative Gains Traction
Beyond price movements, institutional accumulation fortifies the market’s foundation. Since July, Nasdaq-listed TAO Synergies and xTAO (TSXV) have collectively acquired approximately 83,649 TAO valued at around $26-$27 million. A portion of these holdings is reportedly being staked at attractive double-digit yields, reducing the circulating supply.
In the AI infrastructure space, Bittensor’s unique subnet architecture and on-chain incentives continue to attract developers and data providers. Current sector analysis places TAO among the leading assets in the DePIN/AI landscape.
Final Thoughts
The breakthrough above $405 has confirmed the completion of a long-term falling wedge pattern, presenting a technical opportunity that could drive the token towards $500 in the near future. Analysts suggest that if bullish momentum remains steady, targets ranging from $700 to $900 could become realistic.
On the flip side, a decisive daily close below the $355-$327 range could undermine the current bullish trend and lead TAO into a phase of short-term consolidation.
In summary, the prevailing conditions are favorable. Grayscale’s SEC filing, consistent institutional investment, and improving on-chain and technical signals have positioned Bittensor (TAO) in a structurally optimistic light. As long as prices hold above the $405 breakout area, the potential for reaching $500 appears increasingly plausible.
Cover image from ChatGPT, TAOUSD chart from Tradingview
