Bittensor (TAO) Faces Volatility: Could Upcoming Halving Push Price Above $400?

Bittensor (TAO) formed a bullish breakout above $400, with traders watching for sustained momentum and potential gains toward the $524 target zone.

The first TAO halving in December will reduce daily emissions by 50%, enhancing scarcity while introducing a long-term deflationary structure.

Despite short-term volatility, TAO maintains strong liquidity and leads AI-based crypto assets with a $3.76 billion market capitalization.

Bittensor (TAO) fell 11.79% this week and is trading at $378.66.However ,despite the dip, $712M in daily volume shows strong investor interest in the AI-focused token as it navigates short-term volatility.

Technical Breakout and Market Structure

The TAO/USDT pair broke out from a long-term descending wedge pattern on the daily chart. Trader Captain Faibik highlighted a bullish reversal pattern that revealed renewed buying interest after months of compression.The token moved above the upper resistance near $400, before retracing to turn the same level to support.

If Bittensor can make a daily close above $400 it could drive prices toward the $524 target,a potential 139% gain from the breakout zone. However, a drop below could prompt a retest of support

Spikes and small pullbacks in trading volume show short-term traders are unsure. Analysts say the latest price patterns are mixed. While the long-term trend looks positive, the short-term outlook depends on keeping the $410–$451 range intact.

TAO Halving and Supply Dynamics

Bittensor’s first halving, set for December, will cut daily emissions from 7,200 TAO to 3,600 TAO. This reduction is likely to change the token’s supply, potentially boosting its long-term value if demand stays strong.

Market observers are however cautioned that reduced emissions also test the network’s sustainability. TAO is putting more effort on transaction fees and ecosystem growth to keep the network running smoothly.

Market Volatility and Investor Sentiment

TAO supported by a $3.76 billion market capitalization and over $640 million in daily trading volume is leading AI-focused cryptos.MACD on its price charts indicates renewed buying strength,but RSI divergence near 65 is warning of weakening pressure.

Therefore If prices sustain above $451, momentum could push toward $500. On social media, discussions among traders show contrasting views. While some anticipate a breakout rally fueled by halving optimism and Grayscale’s 41% allocation to TAO in its AI Index Fund, others expect a sharper correction if miners or subnet owners continue profit-taking

The market’s next move may depend on whether TAO maintains its structural support during this volatile phase.

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