Grayscale’s SEC Trust Filing Sends Bittensor (TAO) Flying 33%: $500 Target Incoming?

Bittensor (TAO) ripped as much as 33% after Grayscale filed a Form 10 with the U.S. Securities and Exchange Commission for the Grayscale Bittensor Trust.

If the filing becomes effective, the trust would begin reporting like a public company (10-K/10-Q with audited financials), shorten private placement lockups from 12 to 6 months, and pave the way for OTC quotation, the same playbook Grayscale used to scale access to BTC and ETH.

For TAO, the timing is important: it sits at the crossroads of two hot narratives, decentralized AI and institutional crypto. Easier, regulated access could channel new liquidity into TAO and legitimize the asset for treasuries, funds, and RIAs seeking exposure to on-chain AI infrastructure without custody headaches.

Bittensor (TAO) Price Action: Key Levels, Momentum, and What’s Next

Technically, TAO has staged a strong rebound from the $315 support, just above the 38.2% Fibonacci retracement at $307, and is now holding firm above $410, its highest level in weeks. The move above $327 and $405 confirms a breakout from the year-long falling-wedge structure, confirming a bullish momentum.

Momentum indicators reinforce this view: the RSI has climbed from the low 40s into bullish territory without showing signs of exhaustion, while the MACD has flipped positive after weeks of flattening, supporting the case for continued upside.

Spot volume has expanded sharply, but open interest remains subdued, suggesting that the rally is still largely spot-driven, a healthy backdrop that could amplify gains if sidelined traders chase the breakout.

Immediate supports now sit at $380, $355, and $327, while holding above $405 keeps the door open for a potential run toward $500 in the sessions ahead.

Institutions Accumulate as AI Thesis Strengthens

Away from the tape, institutional accumulation continues to build the floor. Since July, Nasdaq-listed TAO Synergies and xTAO (TSXV) have acquired roughly 83,649 TAO ($26–27M), with a portion reportedly staked at double-digit yields, reducing circulating supply.

Within the AI stack, Bittensor’s subnet design and on-chain incentives keep drawing developers and data providers, and sector trackers now place TAO among the top mindshare leaders in DePIN/AI.

Bottom Line

The breakout above $405 has confirmed the completion of the long-term falling-wedge pattern, a technical milestone that positions the token for a potential rally toward $500 in the near term. Market analysts note that if momentum persists, extension targets between $700–$900 remain firmly on the table.

On the downside, only a decisive daily close back below $355–$327 would weaken the bullish structure and risk pushing TAO into short-term consolidation.

Overall, the backdrop remains constructive. Grayscale’s SEC filing, steady institutional accumulation, and improving on-chain and technical signals have turned the Bittensor (TAO) outlook structurally bullish. As long as price holds above the $405 breakout zone, the path toward $500 appears increasingly credible.

Cover image from ChatGPT, TAOUSD chart from Tradingview