Grayscale saves Bittensor (TAO) from crashing to its 9-month low. On the 8-hour time frame, the token is about to break out from a falling wedge, and a 60% rally is expected. However, analysts state, “this looks less like a breakthrough moment for Bittensor and more like a positioning move.”
TAO struggles to stay afloat
TAO crashed below the opening market price of $223 and was trying hard to float above this level. Despite repeated attempts to reclaim this level, bearish pressure continued to push TAO lower. Momentum shifted after Grayscale filed with the U.S. Securities and Exchange Commission (SEC) to convert the TAO into a trust for an exchange-traded fund, sparking a rapid price surge.
The token rose from $225 to $245 in just a matter of a few hours, erasing all the losses the token went through during the course of the week. As such, the TAO is up by 8% during the past week.
Bittensor narrowly escapes from crashing to 9-month low
Although, on the above chart, it shows as an exponential rise, when the bigger picture is considered, TAO narrowly escaped from crashing to the 9-month low of $195. TAO was heading towards this low level before Grayscale filed the S-1 document with the SEC, to get approval to use the TAO tokens in the fund as ETFs. This timely help stopped TAO on its track towards the lower support zone.
Although the spike could have saved the token from a huge crash, the token is still not inside the bullish descending channel. It needs to flip the lower trendline of the descending channel, which is acting as resistance, into a support level.
Meanwhile, crypto analyst Lavneet Bansal stated, “This looks less like a breakthrough moment for Bittensor and more like a positioning move. Grayscale is expanding its product shelf around emerging narratives, not necessarily endorsing the underlying technology. As interest around AI and compute-adjacent crypto themes grows, having a regulated wrapper ready matters more than making a strong call on fundamentals. ETF filings signal preparedness, not conviction.”
