TAO's Price Target: Is $285 Within Reach and What Should Traders Do?

As we start 2026, Bittensor (TAO) appears to be on the brink of a significant upswing. This potential surge is fueled by a positive market breakout, an optimistic shift in sentiment, and ongoing recovery across the market. Furthermore, numerous crypto analysts are making bold predictions, drawing attention to TAO on social media platform X.

Key Takeaways

TAO's price increased by 9.55% within 24 hours, reaching around $242.
Trading volume surged by 42% to nearly $89.87 million, indicating heightened interest.
The price rally is largely attributed to the broader market recovery and a recent ETF filing by Grayscale.
Traders are showing increased confidence in long-leveraged positions, suggesting a bullish sentiment.
Technical analysis suggests that a stable close above $235 could lead to a rise toward $285.

TAO's price is eyeing $285, but what should traders really do?

What’s Behind Bittensor’s (TAO) Current Rally?

With a notable rise in TAO's price and market participation, many are curious about the driving forces behind this trend, especially after a period of stagnation.

The primary catalyst for TAO's surge is likely the overall recovery in the cryptocurrency market, combined with Grayscale Investments’ recent filing on December 30, 2025, to convert its Bittensor Trust into an Exchange-Traded Fund (ETF) under the ticker GTAO. Grayscale aims to introduce the first U.S.-listed trading product linked to TAO, much like their previous strategies for Bitcoin and Ethereum.

In addition, data from Coinglass indicates that traders are significantly more inclined to take long-leveraged positions rather than short ones. Currently, the levels of $221.7 and $250.2 are crucial, showcasing overleveraged positions with $4.65 million in long positions compared to $1.73 million in shorts. This reflects strong bullish sentiment for TAO in the short term.

TAO Exchange Liquidation Map

Technical Analysis of Bittensor (TAO)

A recent technical analysis from AMBCrypto revealed promising signs for TAO's upward trend based on the daily chart. During a period of market uncertainty, TAO managed to test its important support level at $207, where it consolidated for nearly two weeks. The recent rally has allowed the altcoin to break free from this consolidation, marking an end to its prolonged stagnation.

Bittensor (TAO) price action

Should TAO manage to maintain a daily candle close above $235, there's a strong chance of witnessing an additional 18% rally, which might push the price towards the next significant resistance level of $285. However, if TAO fails to stay above the $235 mark, this bullish scenario could be jeopardized.

As of now, the Average Directional Index (ADX) stands at 31, exceeding the critical threshold of 25, indicating strong upward momentum.

In addition to price actions and derivative trends, crypto analysts on X have been making ambitious forecasts, with some projecting a potential rise of 40% to 50%, while others suggest a surge exceeding 60% in the days to come.

Conclusion

As TAO gains momentum, traders should remain vigilant and strategize accordingly. Understanding market trends, trading volumes, and sentiment can help in making informed decisions as the cryptocurrency landscape continues to evolve.