Bittensor (TAO) surged 15.8% in the past 24 hours and climbed to $247.70 as trading activity resumed aggressively in the market.
Daily trading volume increased 87.3% to $272.8 million, highlighting a sharp increase in participation after several weeks of continued weakness.
The rally developed after TAO spent much of May and early June stuck in a declining structure that repeatedly rejected attempts at recovery.
As buying interest built, traders pushed the token back towards the key $255 resistance zone that previously served as support before a broader correction occurred.
However, TAO is still trading below the major barrier of $300, leaving a significant hurdle to clear. Despite this, the latest advance ranked among the strongest daily rallies in recent weeks and shifted short-term sentiment in favor of the bulls.
Why does selling pressure persist around TAO?
Despite the strong recovery, the underlying order flow data paints a more cautious picture.
CVD of the spot taker remained dominated by sellers, indicating that aggressive sellers in the market continued to outweigh aggressive buyers throughout the rally.
The divergence suggests that passive bids are absorbing pressure on the sell side rather than buyers seeking higher prices via market orders.
Even though the strong price appreciation reflected an improvement in sentiment, the imbalance in takers’ activity showed that conviction had not completely shifted in favor of the bulls.
Nonetheless, TAO maintained its gains even as sellers remained active, which highlighted growing demand around current levels.
If buyers continue to absorb the available supply, sentiment could improve further. However, continued seller dominance could further slow the recovery if demand begins to weaken.
Channel Breakout Changes TAO Technical Picture
A notable change appeared on the daily chart after TAO broke out of its descending channel, ending a pattern that had guided prices lower since May.
The buyers initially defended the $192 support region before pushing the price sharply higher and regaining ground towards the middle of the previous trading range.
The breakout also took the price above the upper boundary of the channel, which strengthened the bullish case for a broader recovery.
Meanwhile, the MACD showed the first signs of stabilization after recovering from deep negative territory. The histogram turned positive, while the MACD line attempted a bullish crossover below the signal line.
Although the crossover is not completely complete, the improving structure indicates that bearish pressure has weakened significantly.
If buyers maintain control above the breakout zone, TAO could challenge the $255 resistance zone before targeting the psychologically important $300 level.
Final summary
- TAO broke out of its descending channel as volume and demand accelerated.
- Sellers’ dominance persisted, but buyers continued to absorb supply during the rally.
