- TAO is holding above $200, a key support level that traders see as crucial for a potential recovery.
- Analysts say reclaiming $250 with strong volume could end TAO’s months-long downtrend.
- AI investment keeps growing, but TAO must defend key support before a stronger rally can take shape.
Bittensor (TAO) is holding above the closely watched $200 support level as analysts assess whether the token can recover from recent losses. According to CoinMarketCap, TAO traded at $212.57 at the time of writing, down 1.73% over the past 24 hours, while daily trading volume exceeded $106 million.
TAO reached nearly $767 earlier in the market cycle before falling sharply during the broader crypto market pullback. Even after that decline, the token has continued to draw attention because of its focus on decentralized artificial intelligence. Analysts now say the current price range could show whether buyers are ready to regain control or whether the recent downtrend will continue.
Analysts Highlight Critical Support Zone
Crypto analyst DonaX₿τ said TAO remains in a broad Elliott Wave correction after its rally from about $29 to nearly $770. The analyst wrote, “Although I’ve shifted my $TAO content to focus more on fundamentals rather than price action, I’m going to share my macro outlook.” DonaX₿τ said the current pullback likely represents Wave 4 and added that Wave 5 could reach around $1,500 or as high as $2,900 if market conditions become euphoric.
The analyst also highlighted the $200-$220 range as an important support area where buyers have repeatedly stepped in. According to the chart, selling pressure has started to ease, with a rounded bottom beginning to form. DonaX₿τ said holding above that range could support a move toward the upper boundary of the descending channel before a possible breakout.
Momentum Signals Remain Mixed
Another market analyst, 2xnmore, focused on TAO’s repeated defense of the $200 support level. The analyst wrote, “$TAO just told you where the line is.” According to 2xnmore, buyers have defended that price three times in five weeks, making it one of the most important levels on the chart. The analyst also pointed to improving momentum indicators, although the broader trend has yet to turn higher.
However, 2xnmore cautioned that TAO still faces a series of lower highs, showing the downtrend remains intact. The analyst said, “Hold above $200 and reclaim $250 on expanding volume, and the descending structure breaks for the first time since April.” The post added that a daily close below $200 could bring the February low near $145 back into focus.
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AI Growth Supports Long-Term Narrative
Meanwhile, analyst CHETAN said TAO could continue recovering as long as it holds above its February trendline. The analyst wrote, “as long as $TAO Holding above its feb low trendline its looking good for me.” According to the chart, a successful defense of that support could open the way for a move toward the $305 to $470 range.
The broader artificial intelligence industry continues to attract significant investment, providing additional context for projects such as Bittensor. Global corporate AI investment reached $581.7 billion in 2025, while forecasts put worldwide AI spending above $2.5 trillion in 2026. Even so, analysts say TAO will still need to hold key support levels before the market can confirm a stronger recovery.
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