TAO Price Rises 43% on Jensen Huang's Artificial Intelligence Vision but Faces Price Correction Pressure

In recent days, Bittensor (TAO) has experienced an impressive 43% surge, reaching the upper boundary of its recent trading range. However, the rally has now stalled as TAO failed to break through a key resistance level, signaling a potential correction phase may be approaching.

Although technical signals still indicate an upward trend, the current market context makes a reversal increasingly likely.

Investor Sentiment Is Optimistic but Risks of a Sell-Off Remain

Last week, investor sentiment toward TAO improved significantly thanks to large inflows into the market, accompanied by a strong price increase of the token. This excitement was further reinforced by NVIDIA CEO Jensen Huang’s speech at GTC 2026. In his speech, he painted a future involving “reasoning” systems and autonomous AI agents—a vision that directly benefits AI tokens like TAO, which operate at the intersection of decentralized AI and blockchain infrastructure.

Huang’s speech immediately generated positive market reactions, with investors viewing it as a long-term catalyst for AI-related cryptocurrencies. However, this price rally is more speculative than based on fundamentals, making the market more fragile. Nonetheless, this remains the highest investor optimism for TAO in nearly five months.

Weighted TAO Sentiment Index | Source: Santiment An important factor is that TAO’s Money Flow Index (MFI) has surpassed 80, entering overbought territory. This indicates buying pressure is unsustainable, and history shows that such conditions often precede exhaustion of momentum and a price correction. The current MFI level is similar to previous periods when TAO faced significant declines.

In the past, whenever the MFI reached or exceeded overbought levels, the market experienced increased profit-taking pressure, leading to sharp price drops. When demand becomes saturated, new capital is crucial to sustain the rally. Without fresh funds, overbought conditions are typically resolved through price corrections rather than stabilization.

TAO’s MFI | Source: TradingView## Historical Resistance Level at $300: A Major Barrier for TAO

Currently, TAO’s price hovers around $277 after failing to break through a critical resistance at $298. Over the past four months, the $300 psychological level has been repeatedly rejected, confirming it as a strong barrier for TAO’s price. Each failed attempt to surpass this level further emphasizes its importance as a supply zone.

If selling pressure continues at the current price, TAO could fall below the $250 support level and potentially drop further to $229. This scenario becomes more plausible as overbought conditions on the MFI ease and speculative momentum weakens.

TAO Price Analysis | Source: TradingView However, if the momentum from the GTC speech helps TAO break through the $298 resistance and surpass $300, the market outlook could change dramatically. Successfully overcoming this resistance would open the door for TAO to move higher, targeting levels of $312 and $329, while completely invalidating the current bearish signals.

Conclusion

Although Bittensor is attracting strong attention due to AI and blockchain narratives, current technical factors indicate a high risk of a price correction. Investors should exercise caution and carefully consider their decisions, especially as the market remains sensitive to speculative factors rather than fundamental value.