TAO, the native token of the Bittensor network, is trading near $215 after declining more than 55% from its previous peak of around $500.
The latest price action has brought the asset back to a key support region between $175 and $215, an area that previously attracted buyers earlier this year. Technical indicators suggest that market participants are closely monitoring whether the support zone can hold amid continued bearish pressure.
TAO Extends Multi-Month Downtrend
TAO has remained in a sustained downtrend for the past eight months, characterized by a series of lower highs and lower lows. Following its rally to nearly $500, the token experienced consistent selling pressure that gradually pushed prices lower across several months.
The decline accelerated during recent weeks as broader cryptocurrency market weakness weighed on risk assets. With TAO now trading near $215, investors are assessing whether the current level represents a potential stabilization point or the continuation of the broader downward trend.
Also Read: TAO Holds Near $250 as Analyst Tracks Key $225 Support
Key Support Zone Faces Another Test
One of the most important developments on the chart is TAO’s return to the $175-$215 support range. Earlier in January 2026, the token found support near $175 before rebounding sharply toward $350, demonstrating strong buying interest at those levels.
Now, the market is revisiting the same area for a second time. Technical analysts often view repeated tests of major support zones as critical moments because they can determine whether buyers remain willing to defend the price or whether sellers will gain control and push the asset lower.
RSI Shows Early Signs of Strength
The Relative Strength Index (RSI) currently sits near 36, placing it close to oversold territory. While the indicator has weakened considerably during the recent decline, it has not fallen to the extreme levels recorded during the January low.
This difference has attracted attention because it may indicate a developing bullish divergence. In such a scenario, the price revisits similar lows while the RSI records a higher low, suggesting that bearish momentum is beginning to weaken. However, analysts note that the divergence remains unconfirmed until additional price action supports the signal.
MACD Remains Bearish Despite Support Test
While the RSI offers some potential encouragement, the Moving Average Convergence Divergence (MACD) indicator continues to reflect bearish conditions. The MACD remains below its signal line, and no confirmed bullish crossover has emerged at the time of writing.
As a result, traders remain cautious despite the proximity to a major support level. If TAO holds above $175 and momentum indicators begin to improve, the token could attempt a recovery toward the $250-$300 range. Conversely, a breakdown below support could expose the market to further downside and increase the likelihood of a move toward lower price levels.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
Also Read: TAO Price Consolidation Tightens Above $200 as Traders Await Major Breakout
