- TAO formed an inverse head and shoulders pattern, breaking key resistance and signaling a strong potential rally above $600.
- Institutional interest grows as Grayscale’s AI Fund holds over one-third of TAO, boosting market confidence and liquidity prospects.
- The December 2025 halving will reduce TAO’s supply, increasing scarcity alongside high staking rates that limit available tokens.
As of this writing Bittensor (TAO) is down 4.14% in 24 hours but up 6.02% over the past week. Volume is holding strong as institutional interest grows ahead of its December 2025 halving event.
Technical Patterns Signal Possible Upside for TAO
The TAO/USDT daily chart on Binance reveals an inverse head and shoulders pattern, a recognized bullish reversal indicator. This is suggesting a potential end to the downtrend.
After breaking horizontal resistance near $480 that has been tested multiple times, the price shifted to upward movement. The projection shows target prices above $600, if momentum holds, but a breakdown below this level could lead to a retest or consolidation. Bulls seem to be regaining their control in the market.
Institutional Interest and Market Activity Strengthen TAO
TAO’s market activity has been notable, with daily trading volumes consistently above $400 million last week. On October 15, volume spiked to $943 million, reflecting heightened trader engagement.
Over 70% of circulating TAO is staked, reducing liquid supply and supporting price stability.
Institutional involvement is rising, with Grayscale’s Decentralized AI Fund holding over one-third of its portfolio in TAO.
A recent SEC filing for the Grayscale Bittensor Trust could facilitate future exchange-traded products. This development may increase liquidity and institutional participation, enhancing the coin’s market visibility.
The Upcoming Halving
Bittensor’s first halving, expected in December 2025, will reduce daily token emissions once supply thresholds are met. Unlike Bitcoin, TAO’s halving is supply-triggered rather than block-based.
This reduction in new supply may increase scarcity and drive demand higher, especially as staking limits available tokens.Analyst Quinten Francois highlighted TAO’s unique tokenomics and subnet model as competitive advantages.
Francois predicts TAO could reach a trillion-dollar market cap within the next decade, referencing its growth potential tied to Reed’s Law. With growing volume, staking, and institutional backing, TAO’s position strengthens ahead of this supply event.
