TAO, the native token of the Bittensor network, has extended its five-day rally, gaining roughly 25% and reaching a two-month high. Buyers are now aiming for a decisive move above the psychological resistance at $300, a level that has capped recent upside.
What's Driving the Rally
The latest leg higher follows the release of ChatGPT-6 Astra and the launch of the Buttensor (BUTT) meme coin on Raydium, a Solana-based decentralized exchange. BUTT is paired with TAO, and its tokenomics direct transaction fees toward automatically purchasing TAO and distributing it to holders. That mechanism has drawn attention to the token, with social dominance climbing to 0.12% from 0.05% in the same period.
Derivatives activity has also picked up. Open interest in TAO futures reached a three-month high of $428.57 million, signaling that traders are adding positions as the rally gains momentum.
Technical Picture
TAO is trading above its 50-day, 100-day, and 200-day exponential moving averages, which are clustered between roughly $220 and $236. The Moving Average Convergence Divergence (MACD) indicator remains above its signal line, suggesting upside momentum is intact. However, the Relative Strength Index (RSI) has hit 70 on the daily chart, placing the token at the threshold of overbought conditions.
That leaves TAO vulnerable to a short-term correction even as the broader trend stays bullish while price holds above the moving-average cluster.
Key Levels to Watch
Immediate resistance sits at $300. A confirmed daily close above that level could open the path toward $369, a high recorded on Sept. 13, 2025. On the downside, support is identified at the 200-day EMA near $236, the 100-day EMA at $222, and the 50-day EMA around $220.
The next test is whether buyers can push through $300 on a daily close. If they fail, the token may pull back toward the 200-day EMA, where the moving-average cluster could provide a floor.
