Bittensor (TAO) price has recently gained over 70% after breaking out of a long-standing falling wedge pattern, a technical formation that usually signals a strong continuation of an existing trend.
In this case, the wedge signaled a broader downtrend, which began in early January, following a sharp rally from the December 2022 lows.
After setting lows near $100, Bittensor price recovered to touch the wedge’s upper trendline three times—first in late January, then again in mid-February, before finally breaking out on April 22.
Following its breakout, Bittensor price is now consolidating local highs, holding firmly above horizontal support at ~$335, which aligns with the 20-day EMA ($337).
While the overall price structure remains bullish, short-term momentum has cooled, with the RSI declining from overbought levels at the local top to 63 at press time. The MACD histogram is also starting to print in the red, signaling weakening bullish momentum.
Despite this, the 20 EMA remains above the 50 SMA, reinforcing the underlying bullish trend. As long as TAO maintains support above the $335 zone, the breakout remains intact and continuation is likely.
After clearing the local resistance near $390, the next—albeit weaker—barrier lies around $420, where TAO was previously rejected following a sharp leg down in early February.
A decisive breakout above this level, especially on strong volume, could open the door to the next upside target in the $460–$470 range — a key horizontal cluster formed in late January and the rejection after the April 20 swing high.
Apart from Bittensor, other AI-focused tokens have recently staged impressive breakouts. Virtuals Protocol (VIRTUAL) surged 60% following a breakout from a consolidation range, while Aixbt (AIXBT) delivered a 110% gain after its range breakout.
