## Bittensor (TAO) in the spotlight: What is TAO and why are investors watching the $300 level?

As 2026 begins, **Bittensor (TAO)** has captured market attention after breaking out of consolidation patterns that had been ongoing for weeks. Although the current price hovers around **$240.50** with a market capitalization of **$2.31B**, analysts point to resistance targets at higher levels that could be key in the coming weeks.

### The narrative shift: Institutional catalysts and market recovery

The bullish turn in TAO is due to multiple converging factors. First, news that **Grayscale** is moving forward with plans to convert its Bittensor Trust into an exchange-traded fund has significantly improved sentiment. This move opens the door to greater institutional penetration, which traditionally accelerates sustained bullish movements.

Additionally, the halving that TAO experienced in December caused a severe correction but also laid the groundwork for a structural recovery. Prominent analysts like Michael Van De Poppe have highlighted that the asset recently regained the 21-day moving average, marking an important technical inflection point.

### Technical reading: Indicators confirming momentum

From a technical analysis perspective, the situation shows constructive signals. The price has surpassed the 20-day EMA and remains above the historical support zone of $250, although the current figure of **$240.50** reflects short-term volatility.

Indicators support a recovery outlook:

- **RSI (Relative Strength Index)**: Crossed the neutral level of 50, showing positive momentum
- **MACD**: Confirmed a bullish crossover on the daily timeframe
- **ADX (Average Directional Index)**: Reinforces the strength of the upward movement
- **OBV (On-Balance Volume)**: Shows an upward tilt, suggesting sustained accumulation

These indicators collectively are no coincidence: they represent institutional and retail buying convergence.

### Targets at stake: From $280 to $300 y beyond

If TAO maintains the key support, the next milestones are **$280** and subsequently **$300**. Surpassing this last barrier would open a door to broader resistances, with some analysts pointing to the **$490** range in an extended bullish scenario.

However, it is crucial to note that the price has experienced a **-3.72% decline in the last 24 hours**, reminding us of the characteristic volatility of this asset.

### Risk scenarios: What to monitor

If the bullish momentum loses traction, the support levels to watch are **$230** and **$207**. A drop below the 20-day EMA could reactivate bearish pressure and prolong consolidation.

**What traders need to know**: TAO is an asset with improving institutional fundamentals, but price confirmation is needed in the upcoming closes. Sustained confirmation above $280 would be the definitive signal that the rally has legs to reach $300.