Bittensor [TAO] has recorded a three-day bullish run, with yesterday’s aggressive surge pushing the token above the 20-day and 50-day EMAs while clearing the $202.50 resistance that had held for weeks.
However, TAO remains within a bullish flag pattern that has held since March. With whale activity increasing, spot buyers dominating, and Open Interest climbing, could TAO extend its recovery toward $240?
TAO breaks above key resistance
TAO surged above the $202.50 resistance and the 20-day EMA before briefly testing the 50-day EMA around $205.82.
The move strengthens the bullish setup, although the token remains inside its broader bullish flag, making the $205-$220 zone the next key zone for buyers.
A sustained break above the 50-day EMA could expose TAO to the 100-day EMA at $220.62, while a successful move beyond this level would put the $240 resistance in focus.
Could the positive on-chain metrics accelerate the bullish run?
Recent Futures Average Order Size data shows that large whale orders are increasing around TAO’s current trading price, signaling greater participation from larger market players.
Bitternsor’s continued accumulation near $200 could provide additional demand and help buyers defend the recent bullish gains.
Moreover, TAO’s Spot Taker CVD data also indicates a stronger buyer dominance, suggesting that aggressive buyers are increasingly absorbing available sell-side liquidity.
If this buying pressure persists, it could provide the spot-market confirmation needed for TAO to maintain its bullish momentum and challenge higher resistance.
Moreover, TAO’s Open Interest has surged 12% to $140.2 million, highlighting a sharp increase in capital entering the derivatives market during the latest price recovery.
Usually, rising Open Interest alongside price gains suggests traders are positioning for a further bullish rally. The increasing open positions in the market could provide the required volatility to keep the momentum running toward $220.62 and eventually $240.
Volume strengthens the move
TAO’s trading volume has climbed to $128 million, confirming stronger market participation behind the recent three-day rally.
The altcoin’s sustained volume at elevated levels could help validate the breakout and give buyers enough momentum to challenge the upper boundary of the bullish flag.
With TAO holding above $202.50, rising whale activity, buyer-dominated spot flows, and growing OIcould keep the bullish setup intact. A break above the 100-day EMA at $220.62 could open the path toward $240.
Final Summary
- TAO clears $202.5 resistance as bullish momentum accelerates toward the $240 target.
- Rising whale orders, Spot CVD, Open Interest, and volume strengthen TAO’s breakout setup.
