TAO Recovers from March Lows, Targets $429 SMA Confluence

Bittensor (TAO) continues its impressive recovery, climbing nearly 47% in the past seven days to trade at $357.92.

Bittensor (TAO) price has continued its impressive recovery in recent days, surging nearly 47% in the past seven days to trade at $357.92. The AI-focused blockchain token has re-entered the spotlight as its price action breaks out from a multi-week downtrend, driven by renewed risk appetite and growing interest in AI narratives across crypto.

After bottoming around $200 in late March, TAO has staged a sharp comeback, bouncing nearly 80% to current levels. This rebound coincides with a clean break above the 21-day EMA, which now acts as short-term support at $278.3.

Momentum indicators support the bullish view, with RSI climbing toward overbought territory at 68.8, while the Stochastic Oscillator also prints strong upward pressure.

The next major hurdle lies at the $429 level, which aligns with the 200-day SMA and marks the midpoint of the November–March range. A decisive close above this region would open the door toward a run at $458 and potentially the 0.618 Fibonacci retracement level at $596.8. Given TAO’s historically volatile nature, such a move remains well within reach if current sentiment holds.

Chart of Bittensor (TAO) price action highlighting key levels to watch closely

On the other hand, failure to clear $429 could invite a retest of the $305 pivot, which coincides with the 0.236 Fib retracement level and former resistance.

This level now serves as a key psychological boundary, and buyers will likely defend it on any dips. A break below this point would negate the bullish structure and spark a return toward the 2023 lows around $164.3.

This scenario becomes more likely if MACD readings show signs of weakness, considering the MACD line has recently flipped decisively bullish, crossing above both the signal line and zero axis to further validate the trend shift.

While short-term pullbacks remain possible, especially as RSI approaches overbought levels, structure remains intact as long as TAO manages to stay afloat above the $305 support.

This impressive rally has also caught the attention of industry figures like Barry Silbert, who praised Bittensor’s design and likened its tokenomics to Bitcoin’s due to its 21 million fixed supply and scheduled halvings.

However, these comparisons sparked controversy among BTC maximalists, leading to heated discussions about the relative merits of Bitcoin and Bittensor. Nonetheless, this attention serves to amplify the narrative further.

This scenario plays out as the digital asset space grapples with subdued altcoin performance in 2024, rendering new and innovative projects largely underdeveloped. In contrast, AI tokens like Bittensor are beginning to claim the spotlight.

News data source: kdj.com

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