TL;DR:
- TAO extended its five-day rally to roughly 25%, reaching a two-month high as buyers pushed toward the psychologically important $300 resistance level.
- Buttensor’s launch on Solana added attention and a direct demand link, with transaction fees used to purchase TAO and distribute it to BUTT holders.
- Open interest hit a three-month high of $428.57 million, while RSI reached 70, leaving TAO bullish above key moving averages but vulnerable to profit-taking.
Bittensor’s TAO continued climbing on Monday, extending a five-day advance to roughly 25% and pushing toward the psychologically important $300 level. The artificial intelligence-focused token had already gained 16% last week before adding another 12% on Sunday, lifting it to a two-month high. TAO’s steady ascent has put buyers within reach of a breakout that could redefine the rally’s next phase, yet the strength is arriving with increasingly stretched momentum. The $300 threshold now stands as the immediate test, with traders watching whether price can convert recent acceleration into a confirmed daily close above resistance.
Attention around Bittensor has expanded alongside the price move, helped by renewed interest in artificial intelligence tokens and the launch of Buttensor, a parody meme coin on Solana. The unusual connection between meme speculation and TAO demand has added another layer to the rally, because Buttensor transaction fees are used to automatically purchase TAO and distribute those tokens to BUTT holders. The meme coin launched on Raydium after the decentralized exchange introduced TAO trading a day earlier. Social dominance for TAO rose from 0.05% on Thursday to 0.12%, reflecting a sharp increase in crypto-related discussion.
TAO Momentum Builds As $300 Becomes The Critical Test
Derivatives activity has strengthened simultaneously. TAO open interest reached a three-month high of $428.57 million on Monday, showing that traders were adding positions as the token advanced rather than merely closing existing contracts. Rising price and rising open interest reinforce the bullish picture, but they also introduce greater liquidation risk if momentum reverses suddenly. On the technical side, TAO remains above its 50-day, 100-day and 200-day exponential moving averages, clustered between roughly $220 and $236. The MACD also remains above its signal line in positive territory, supporting the view that upside momentum is still intact.
The rally is showing warning signs. TAO’s Relative Strength Index has reached 70, placing the token at the edge of overbought territory and raising the possibility that profit-taking could interrupt the advance. A confirmed daily close above $300 would strengthen the bullish case and expose $369 as the next notable target, matching a high recorded on September 13, 2025. Conversely, rejection at $300 could send TAO toward the 200-day exponential moving average near $236. If that level fails, the 100-day EMA around $222 and the 50-day EMA near $220 would form a deeper support zone.
