Bittensor (TAO) Drops 2.77%, Could Bulls Push It to $320 Next?

The Bittensor’s native token, TAO, declined by 2.77% on the day, extending its overall decline over the last week, where the token declined by 13.76%.

As of January 23, 2026, the token is trading at $237.44, with a trading volume recorded over the last 24 hours amounting to $88.24 million, according to CoinMarketCap.

The token’s market capitalization is $2.52 billion. The daily chart indicates that the token is still in a descending trend since the peak near $520-$540 in November.

This is because the token has not managed to stay above key support levels, indicating that the current structure still favors the bears. Although the token has bounced several times, the movements are not accompanied by any considerable volumes.

Also Read: Bittensor (TAO) Tests $295 as Bulls and Bears Battle for Trend Control

Critical Support and Resistance Levels

TAO is currently contained within the $210-$240 demand zone. There are warnings that a close below $210 could set the stage for a fall into the $180-$160 region in the days to come.

Any potential upside from the current region will face initial resistance in the $280-$290 region before the $320 region comes into play. Only a sustained move above the $300-$320 region has a chance of sending prices in a bullish direction.

As noted by a crypto analyst, @cyrilXBT, if a broader time frame is being observed, then the peak price level of $520 is being used as a reference point for a possible increase; however, based on the prevailing market structure, a re-test of these levels is unlikely unless a major change is observed in the prevailing trend.

Technical Indicators Confirm Downside Momentum

TAO’s weekly chart still indicates strong bearish pressure. Also, the RSI (14) level is approximately 41.31, which is below the 50 level. This indicates that the asset has low momentum.

Furthermore, looking at the chart data on TradingView, the MACD (12, 26, 9) indicator is still negative. This is because the MACD line is approximately -29.35, the signal line is about -20.04, and the histogram is negative.

This level of alignment confirms that the downside momentum is currently at play. There are no signs of a reversal at the moment, and traders should take note of the $210 support level. A break below that level could lead to a stronger decline. While the price may rise in the near future, the rise would only be a temporary correction.

Why This Matters

It’s also necessary for the investor to keep an eye on the support levels, as the stock may fall further if it slips below the $210 price point.

These observed correction moves in the short term suggest that buyers are only making small attempts to enter the market, which reflects a cautious sentiment in the market and makes a positive outlook quite challenging.

Also Read: Binance Japan Adds Bittensor Trading as TAO Recovers and Eyes $412 Next