TAO Holds $290 Support as Grayscale Launch Spurs 86% Upside Target to $540

Investors who would like to take advantage of the growing convergence of artificial intelligence and blockchain technology may find TAO becoming a more attractive option. With the help of the Bittensor protocol, TAO is intended to benefit from economic motivations in a decentralized system that will make AI open, transparent, and freely developed worldwide.

As such, Grayscale has just opened the Bittensor Trust to private placement among accredited investors. This is significant as it means that accredited investors can invest in TAO as a means of leveraging its special positioning in the AI-based decentralized ecosystems.

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

TAO Shows Strength and Eyes $540 Rally

However, the crypto analyst, Posty, highlighted that TAO began 2026 strongly, in line with the gains experienced by many AI-based cryptocurrencies. After its incredible start, TAO was seen to have halted its progress at certain key levels despite its initial surge. This development represents an important juncture for TAO as it remains to be seen whether it will maintain its initial momentum.

Source: X

The silver lining in this situation is that the price did not immediately drop to the levels it broke out at in the previous breakout. This shows that a solid base might be in the making for token TAO. Although the technical indications are quite positive, nervous investors are conserving their emotions in the hopes of not going through another bout of volatility.

TAO Poised for Upside as Key Demand Zone Holds Steady

Moreover, another crypto analyst, CyrilXBT, revealed that TAO remains to show a high level of resilience within a critical demand zone that traders have been observing. Already, the downward momentum has been broken. What is presently occurring is the determination of whether the markets are able to maintain a higher level. So far, all is going well since price action shows a controlled pace.

Source: X

Given that TAO is currently priced at $290, the technical analysis indicates that as long as the base is intact, the token will have a continuation pattern as opposed to an exhaustion pattern. The token will have a potential target of $540 once it breaks the current level. It is very probable that the token will follow the breakout pattern.

Also Read: Bittensor (TAO) Gains Attention as Grayscale Seeks First U.S. ETP Listing