Date: Fri, May 23, 2025 | 10:30 AM GMT

The cryptocurrency market has mounted a solid comeback in recent weeks from its bearish Q1. Bitcoin (BTC) has managed to melt faces with its new all-time high of $111,970, while the impressive 48% monthly jump of Ethereum (ETH) is uplifting sentiment across altcoins — including Bittensor (TAO).

The AI token has surged over 40% in the last month, and the charts suggest it might not be done yet. Technical analysis points to a potential major breakout forming on the horizon.

Source: Coinmarketcap

Cup and Handle in Play

On the daily chart, TAO is flashing a textbook Cup and Handle pattern — a classic structure often seen ahead of strong bullish breakouts.

The “cup” portion formed between late February and early May, beginning with a sharp rejection from the $500 level and bottoming out at approximately $166. Since then, TAO has steadily rebounded, creating a rounded bottom formation that laid the groundwork for a bullish setup.

Bittensor (TAO) Daily Chart/Coinsprobe (Source: Tradingview)

The pullback from recent highs formed a brief consolidation near the $387 level, which also coincides with the 100-day moving average — serving as a crucial support. This created the “handle” portion of the pattern, often seen before a breakout attempt.

Currently, TAO is knocking on the door of its key neckline resistance at $470–$500, a zone it has failed to clear multiple times in recent months. As of writing, TAO is trading around $468, just beneath this critical breakout point.

What Next for TAO?

A clean breakout above $500, particularly if followed by a successful retest, would validate the Cup and Handle pattern and open the gates to a strong upside move.

If confirmed, the immediate upside target is around $745, with the pattern’s projected price objective at $834 — a potential 77% gain from current levels.

Adding more fuel to the fire, the broader market outlook remains bullish. Ethereum is nearing a breakout above the $2,700 resistance level, and a move higher could further ignite momentum across altcoins, particularly those in the AI sector like TAO. Historically, ETH-led rallies have often sparked capital rotations into high-potential altcoins.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research and consult a financial advisor before making investment decisions.

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