Bittensor Rallies 27% on the First Week of 2026, Can TAO Cross $500 This Cycle?

Bittensor (TAO) experienced a strong rally, gaining 27% in the first week of 2026, primarily catalyzed by Grayscale's filing for the first US Bittensor-focused ETF. This development boosted sentiment around decentralized AI assets. Holder behavior suggests limited immediate selling pressure, as most recent accumulators remain near break-even, reducing supply risk. Momentum indicators, like the Money Flow Index (MFI), are approaching levels that, if crossed, would confirm rising buying pressure and support further price discovery.

Historically, TAO has shown resilience, frequently rebounding from the $217 support zone to achieve significant advances, sometimes exceeding $500. Current conditions resemble these prior bullish phases. At the time of writing, TAO traded near $278, facing immediate resistance at $312. Overcoming this level and establishing higher support zones ($335 or $412) is necessary to sustain the push toward the $500 target. A drop below $263, especially towards $217, would invalidate the current bullish outlook.

(Source：BeInCrypto)