Bittensor (TAO) Remains Impressively Resilient, Poised to Breakout

Bittensor (TAO) has remained resilient in early May, holding its bullish structure even as broader market sentiment wavered and Bitcoin experienced a 4.5% pullback.

The post Bittensor (TAO) Remains Bullish as It Holds Key Support and Prepares for Breakout appeared first on Tokenist.

The broader cryptocurrency market has seen a shift in sentiment in early May, with Bitcoin (BTC) pulling back from recent highs and sparking some volatility in the altcoin market.

However, Bittensor (TAO) has remained remarkably resilient, steadily consolidating in a familiar range and showing no signs of a pending reversal.

As the world’s best multi-chain decentralized machine learning (DL) network, Bittensor has been a subject of interest for investors seeking exposure to the rapidly growing field of artificial intelligence (AI).

With Bittensor’s price now poised for a potential breakout, several technical indicators are lining up to suggest that the $480 mark could be in sight.

TAO Finds Strength at Key Support Levels

Over the last ten days, Bittensor has consistently defended the $336 support zone. This price level has emerged as a short-term floor for the altcoin, forming a range-bound structure between $336 and $373.

While many altcoins reacted sharply to Bitcoin’s recent volatility, Bittensor has managed to hold its ground, hinting at growing investor confidence and underlying strength.

A glance at the one-day chart showcases the bullish bias, with price consistently trading above both the 20-period and 50-period moving averages.

The fixed range volume profile highlights the Point of Control (PoC) at $357, a level that has seen heavy trading interest and to which price keeps returning.

Credit: Trading View

Momentum Building Toward a Breakout

Taking a broader perspective, Bittensor’s price behavior over the last month supports the bullish case. After flipping its swing structure by surging past $270 in mid-April, the altcoin rallied to $373 — which also aligns with the 61.8% Fibonacci retracement level from its previous high.

The On-Balance Volume (OBV) on the daily chart has been trending slowly upward, suggesting that buying pressure is accumulating, even during periods of sideways price action. This slow build-up often precedes explosive moves when resistance levels are tested.

Should Bittensor break out of the $373 resistance with sustained volume and close above it, the next target lies near the $480 mark, aligning with the Value Area High and a previous zone of heavy liquidity.

This move would likely be fueled by a strong push from buyers to absorb any remaining sellers at the breakout level and drive price to the next significant resistance.

Short-Term Picture Shows Caution

However, zooming into the 4-hour chart shows a more neutral picture in the short term. While the broader market structure remains intact, the OBV shows no meaningful uptrend on the H4 timeframe. Instead, it has formed a horizontal range, mirroring the price’s consolidation behavior between $336 and $373.

Additionally, moving averages on the lower timeframes are crisscrossing without a clear directional trend, confirming the current state of indecision. Still, bulls are currently defending the $357 PoC level, and a short-term bounce of around 4.5% toward the upper resistance at $373-$375 is likely.

A closer look at the liquidation heatmap reveals a significant cluster of levels between $380 and $390. These liquidity pockets often act as magnets, drawing price toward them before setting the stage for a potential short-term reaction.

As price sweeps through this liquidity zone, it could trigger a brief spike above resistance before a potential retracement. If Bittensor fails to maintain momentum after hitting the $380-$390 region, it may pivot downward, targeting the next support band between $318 and $330 — a region with visible liquidity build-up.

Bitcoin’s Role in the Bigger Picture

Bitcoin’s role in this scenario is pivotal. If BTC can recover above the $95,700 level in the coming sessions, it would likely boost broader sentiment and propel altcoins toward new highs.

Under these conditions, Bittensor would be optimally positioned for a breakout that could carry it toward $480 and possibly beyond, setting the stage for further gains.

However, should Bitcoin fail to regain strength, traders should remain vigilant and prepare for volatility. In this case, we might witness a liquidity hunt as price sweeps through a large zone, temporarily shaking out weak hands before a broader rally.

Final Thoughts

Bittensor’s technical setup suggests that a significant move may