Bittensor’s token, TAO, traded near $379 on Oct. 17 after a sharp correction from its recent rally above $460. The token briefly lost more than 22% in the previous sessions before stabilizing near the confluence of its 20- and 50-day EMAs.
Volume data showed strong recovery interest near this zone and suggested that buyers were attempting to defend the breakout area from early October.
The rebound followed a string of institutional developments around Bittensor’s ecosystem. Connecticut Innovations’ investment through Yuma Asset Management’s subnet funds highlighted Bittensor’s popularity. The initiative echoed recent efforts by TAO Synergies, which raised $11 million in a private placement to expand exposure to Bittensor-linked assets.
Analysts, including Satoshi Flipper and Altcoin Sherpa, noted the token’s structural resilience after the pullback.
Analysts Expect Recovery Momentum Ahead Of Halving
TAO’s recent pullback caught traders’ attention across technical circles. Satoshi Flipper highlighted the descending channel formation on the 1-hour chart, calling it “another chance to pick up cheap TAO.”
Flipper’s chart showed the token consolidating between narrowing trendlines, with the RSI rebounding from oversold levels. He suggested that this is a setup that could precede a short-term reversal. Additionally, the upcoming halving event in less than two months added further weight to his bullish bias.
Another trader, Johnny, viewed TAO’s structure from a wider lens. The analyst’s daily chart indicated that the TAO token had completed a clean retest near the $400 region.
Johnny claimed the recent correction was a retest of support levels by the TAO USD pair. The trader’s analysis aligned with key volume clusters around the mid-range zone, suggesting accumulation near support before a potential push toward the $460 resistance band.
Meanwhile, Altcoin Sherpa pointed to a confluence of signals around the 200-EMA, describing the region as an ideal area for a bounce.
Sherpa’s Fibonacci analysis placed retracement support between $367 and $341, overlapping with the consolidation range visible in previous daily sessions. The trader said he might “take a position” at these levels, implying confidence in the structure’s ability to hold.
Moreover, across the charts, analysts appeared to converge on a similar reading: TAO’s short-term correction seemed more like a reset within a larger bullish continuation.
Institutional Backing Strengthens TAO’s Long-Term Case
The improving technical setup followed a decisive shift in TAO’s institutional landscape. Through its AI/Q Fund, Connecticut Innovations invested in subnet token strategies managed by Yuma Asset Management, a firm backed by Digital Currency Group.
The move marked one of the first state-backed entries into decentralized AI infrastructure, offering investors direct exposure to subnet economies within the Bittensor network.
Specifically, Yuma positioned its funds as institutional gateways into decentralized AI, using models similar to traditional market composites. The Yuma Subnet Composite Fund tracked all active subnets by market weight, while the Yuma Large Cap Subnet Fund focused on top-tier subnets with stronger liquidity. Both vehicles abstracted the technical complexity of subnet participation, giving investors a structured approach to TAO’s expanding ecosystem.
Earlier, TAO Synergies completed an $11 million private placement, signaling continued institutional confidence. Together, these efforts built a narrative that extended beyond short-term speculation. Institutional participation, combined with decentralized AI’s rapid evolution, reinforced Bittensor’s position as one of the few projects bridging blockchain infrastructure with scalable, open AI markets
