TAO crypto loses bullish momentum as $252 support nears – What’s next?

Following months of consolidation, Bittensor [$TAO] broke past a strong level of resistance in early September. This was as a result of a spike in trading volume that pushed the price above a former resistance area at approximately $255.

Bittensor hovered around the $215 level through most of August and early September, indicating that buyers were absorbing the selling pressure instead of allowing a larger sell-off.

In mid-September, increased volume allowed $TAO to surge past the $255 level, demonstrating stronger demand for the token. Before the surge, the $255 area acted as a point of resistance.

However, once the token broke out past the resistance, it became a new area of support. The surge past the resistance ultimately led to a strong run-up towards $340 before buyer pressure waned and sellers took over.

Due to profit-taking by traders, $TAO appears to be trending downward, and bullish momentum is weakening. As of writing, the token was trading near $265, with the $252–$255 zone becoming critical.

In light of this, holding this area would show buyers are still defending the breakout, potentially creating a base for recovery. However, losing it would invalidate that support shift, expose the failed breakout, and increase the risk of further declines.

$TAO’s rally weakens as sellers take control

The weakening momentum near $340 marked the start of distribution, as buyers struggled to sustain $TAO’s final advance. The bearish divergence demonstrated that demand for $TAO was decreasing even though prices were increasing, which left the rally extremely vulnerable to selling.

When $TAO declined below its ascending trend line, it indicated that buyers lost short-term momentum. When $TAO traded at prices under $300, it represented a structural change from accumulation to distribution.

Then, the failure of each rebound attempt to push $TAO to prices above $300 and $315 indicated that sellers were beginning to leave positions at lower prices. Overhead supply combined with decreased trading volume restricted any potential rebounds.

However, buyers need more than support alone to establish a reversal. If $TAO breaks the string of lower highs by moving above $280, it would also represent a good opportunity for buyers to regain some lost ground.

Reclaiming $300 with increasing volume would provide solid evidence that buyers are attempting to create a successful reversal and clear path toward $320 and $340.

Ultimately, these areas would demonstrate whether buyers can recover from previous losses or simply create a temporary bounce. Conversely, a four-hour close below $252 would expose $215, putting the September rally at risk of a full retracement.

Final Summary

• Bittensor faces continued downside risk after its rally to $340 weakened and sellers regained control.

• $TAO needs to defend $252–$255 and reclaim $300 to strengthen recovery prospects.