Will TAO's Upcoming Halving Event Trigger Bittensor's Next Major Breakout?

Bittensor has recently bounced back to the $300 mark and is maintaining a steady position around that level, driven by the excitement surrounding its halving event and an improved market sentiment.

Key Takeaways

Bittensor's TAO token is set for its first halving on December 15th, reducing daily supply by 50%.
Current trading price hovers around $300, with potential resistance approaching $330.
Successful trading momentum could drive prices toward $520 if key resistance levels are surpassed.
TAO's daily chart indicates growing bullish momentum.

Will TAO's Upcoming Halving Event Trigger Bittensor's Next Major Breakout?

In the cryptocurrency world, success hinges on fundamental growth, and TAO distinguishes itself within the space. The upcoming halving for Bittensor's [TAO] token is set to take place around December 15th and represents the first time the network will reduce its supply.

This important event will see a 50% decrease in daily TAO issuance, which will create increased scarcity and bolster the economic framework of the network. Research indicates that the halving is an automatic process embedded in the protocol, occurring after 10.5 million TAO tokens have been mined—not tied to any specific date. Block rewards will decrease from 1 TAO to 0.5 TAO, lowering the daily minting of new TAO from approximately 7,200 to 3,600. With a total supply capped at 21 million, Bittensor mirrors Bitcoin's scarcity strategy with its unique AI-driven approach. Like Bitcoin [BTC], Bittensor's halving process is hard-coded, serving as an automatic scarcity mechanism that restricts supply without the need for community decisions.

Can TAO Surpass $330 and Reach $520?

As of this analysis, TAO is in proximity to the $317–$330 local resistance area on the 4-hour chart. The Relative Strength Index (RSI) remains strong at 62, signaling it's in a healthy position without being overbought, while robust support at around $276 has been consistently defended during bullish trends. Additionally, the Moving Average Convergence Divergence (MACD) indicator indicates an upward momentum is building.

Bittensor Technical Analysis

Source: TradingView

If TAO breaks above the $330 threshold, short-term targets may move toward $360. A successful reclaim of the $400–$420 range would pave the way for a potential surge past the $520 mark, an area the token has historically reached after extended periods of compression.

Analyzing the Daily Timeframe for a Trend Shift

On the daily chart, the RSI is currently around 46.96, suggesting that bulls have room to maneuver without facing immediate resistance. The MACD has flipped to a bullish stance, indicating that momentum is strengthening quietly.

Bittensor Daily Chart

Source: TradingView

TAO is forming within a structure that has previously facilitated considerable upward movements, especially with the halving event approaching closely.

Conclusion

With the halving event on the horizon, Bittensor's TAO token appears to be on the verge of significant developments. The interplay of market conditions, technical indicators, and fundamental improvements suggests that traders should keep a watchful eye on this cryptocurrency's potential for growth in the coming weeks.