Bitensor started 2026 with strong momentum as TAO price surged in the first trading week. The rally comes after Grayscale filed to launch the first Bitensor-focused ETF in the United States.
With altcoin ETFs becoming the dominant narrative, this development has acted as a major catalyst and brought new attention to decentralized AI assets.
TAO’s higher price reflects improved sentiment, and institutional exposure through regulated products has historically been more liquid and reliable.
sponsored
Profits for Bitensor holders are increasing
Despite the recent weekly rally of 27%, holder behavior remains supportive. HODL Caves data shows investors are likely not in a hurry to sell to strength. Most wallets that have accumulated TAO within the last seven months are still underwater or barely making a profit at current levels.
Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.
This cost-based structure reduces short-term sales incentives. Investors typically delay distributions until meaningful gains are realized. As a result, supply pressure remains subdued, giving TAO room to recover without facing aggressive profit-taking in the early stages of the rally.
sponsored
TAO eyes potential buying pressure
Momentum indicators suggest that the situation is improving, but are not fully confirmed. The money flow index, which uses price and volume to track buying and selling pressure, is nearing a neutral threshold. If it continues to move above this level, we will see an increase in demand.
Crossing the neutral line indicates that buyers are regaining control after the merger. For TAO, this change is important. Increased capital inflows will strengthen liquidity and support higher price discovery during the current cycle.
Macro momentum often precedes directional movement. If MFIs turn decisively positive, it would be consistent with supportive holder behavior and ETF-driven optimism. Together, these factors could sustain the rally above short-term resistance levels.
sponsored
What does TAO’s past reveal?
Past price trends reinforce the bullish outlook. TAO has repeatedly staged recoveries after testing the $217 support zone. In previous cycles, a bounce from this level would see a rally towards or above the $500 mark.
This repeating pattern reflects the long-term confidence of its holders. If TAO maintains its uptrend supported by accumulation, the upside will continue to rise. The current situation is similar to that of the previous stage, albeit within a different macro environment.
If investors continue to hold rather than distribute, TAO could repeat its historical trajectory. Bolstered by institutional investor interest and reduced selling pressure, the token holds a realistic path towards higher cycle targets.
sponsored
There is a long road to achieving TAO prices.
After briefly falling 5% in the past 24 hours, TAO is trading around $278 at the time of writing, for a one-week gain of 27%. Immediate resistance lies at $312. This level caps recent gains and represents the first hurdle to renewed upward momentum.
The broader cycle outlook supports a move towards $500, but near-term confirmation is still needed. TAO must collect $312 and convert it into support. Establishment of $335 or $412 as higher support zones would signal trend continuation. This is needed for TAO to push up to $500, and the altcoin is 79.4% away from there.
Downside risk remains if sentiment changes. Increasing selling pressure could push TAO below $263. A further decline towards $217 would erase recent gains, invalidate the bullish argument and reset any recovery attempt.
