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.