TAO Price Rally Tests Key Resistance at $334

TAO price rally gains strength near $334 as trendline flips and liquidation data signals shifting market structure and growing momentum.

• TAO price rally breaks descending trendline, signaling structural shift as buyers regain control after prolonged bearish pressure.
• Liquidation data shows early short squeeze signs, while reduced leverage suggests a more stable and controlled market recovery phase.
• TAO price rally tests key resistance zone near $340, where acceptance may confirm continuation toward higher historical levels.

TAO price rally continues to gain traction as Bittensor trades at $334.79, posting a 9.21% daily increase and 21.44% weekly gain, while testing a critical resistance zone after a strong recovery phase.

Market Structure Shift Supports Uptrend Formation

Price action confirms a break above a long-standing descending trendline that capped previous rallies. This shift marks a transition from sustained selling pressure toward renewed buyer control. The breakout followed months of lower highs, reinforcing its structural relevance.

A recent tweet described the trendline flip as a key technical development for TAO. It noted that buyers are defending higher levels after reclaiming lost ground. This behavior reflects stronger demand entering the market.

The rally from February lows shows a clear sequence of higher highs and higher lows. This pattern typically signals early stages of a broader trend reversal. Volume expansion during this phase supports the strength behind the move.

TAO now trades near a horizontal resistance zone between $320 and $340. This range previously acted as support before a breakdown in late 2025. Market participants often reassess positions when price revisits such levels.

Resistance Test Determines Next Price Direction

The ongoing test of resistance remains a key point for near-term direction. Acceptance above this level could confirm continuation toward higher price zones. Previous price history suggests potential movement toward the $380 to $420 range.

The tweet emphasized that reclaiming this zone may open the door for further upside. It also noted that failure to hold above resistance may trigger short-term consolidation. Such behavior is common after strong impulsive rallies.

Price as of writing trades above shorter-term moving averages, supporting upward momentum. However, it approaches a longer-term average that may act as dynamic resistance. Sustained movement above this level would strengthen bullish continuation signals.

A pullback toward the $280 to $300 range remains possible without altering the structure. This area could act as support if tested during consolidation. Holding above the flipped trendline remains critical for maintaining direction.

Liquidation Data Signals Gradual Sentiment Shift

The liquidation chart shows a major spike during early October, driven by long liquidations. This event coincided with a volatile price phase and excessive bullish positioning. Such conditions often precede broader trend reversals.

Through November and December, liquidation activity declined and became more balanced. Price moved lower in a controlled manner, indicating reduced speculative pressure. This phase reflected a gradual reset in leveraged positions.

By mid-December, long liquidations again exceeded shorts across major exchanges. This suggests traders attempted to anticipate a bottom prematurely. Continued downside forced these positions to exit the market.

Data as of writing shows a modest rise in short liquidations as price climbs toward $300. This points to early short squeeze activity as bearish traders adjust positions. Combined with lower leverage, the current environment appears more stable for continuation.