ambcrypto.com 
Bittensor [$TAO] extended its price recovery from the recent slip. After successfully holding $255, the altcoin jumped to $289 before retracing slightly.
At the time of writing, Bittensor traded at $283, up 10.25% on the daily charts. Over the same period, the altcoin’s trading volume climbed 85% to $250 million, reflecting renewed market participation.
$TAO largely rebounded as the market saw renewed interest in derivatives. The altcoin’s Open Interest (OI) rose 9.2% to $365 million, while derivatives volume climbed 48.3% to $946 million.
Source: Coinglass
With OI and volume rising together, it showed increased market participation as investors opened new positions. As a result, the market’s upside momentum strengthened, driven by this market demand.
Bittensor faces heavy profit-taking
While $TAO made significant gains, the market pressure remains extremely high. As such, sellers still dominate the market, especially those who rushed to take profit.
For starters, based on exchange activity, Bittensor has recorded positive net flow for two consecutive days.
On the 21st of May, Spot Netflow dropped to $1.54 million from $3.65 million the previous day. This sustained period of positive net flow signaled heavy profit‑taking, as previously underwater holders rushed to cash out.
Source: CoinGlass
Is the uptrend sustainable?
Bittensor rebounded as speculators returned to the market and positioned themselves. For that reason, the Relative Strength Index (RSI) continued to rise, reaching the neutral zone at 50 at press time.
However, as the market recovered, holders rushed to cash out, which explained why the signal line remained above its RSI. With the signal line at 54, it appears that sellers are more active than buyers.
Source: Tradingview
The altcoin’s Buying Pressure vs. Selling Pressure Relative to Volatility indicator reflected seller dominance. BP/ATR fell to 43, while SP/ATR climbed to 56. This shows sellers have the upper hand and bullish momentum is weak. Historically, such setups typically precede short‑term downward pressure, leading to market pullbacks.
These two conditions leave the market at a crossroads as both bulls and bears seek market control. Therefore, the market’s next move depends on which side outpaces the other.
If spot profit-taking continues, the altcoin is likely to pull back and drop below $260, with $255 as support. On the other hand, if Futures market activity holds and capital continues to flow, $TAO will hold $280 and eye $300.
Final Summary
- Bittensor successfully defended the $255 support level, rebounding to $289, before a slight pullback.
- The market rebounded as demand for the futures rose, but the structure remains weak, as profit-taking persists.
