Bittensor’s native token, TAO, may be preparing for a major bullish reversal after a prolonged period of bearish dominance. Throughout the past few months, TAO’s price action has been characterized by a steady formation of lower highs and lower lows, typical of a deeply entrenched downtrend. But in a key shift, TAO has recently broken above an important lower high, signaling that momentum could be shifting in favor of the bulls.

This structural break is a positive development, but one major step remains: confirmation of a higher low at a critical technical level. If achieved, it could open the floodgates to a powerful rally toward previous range highs — a move that could offer traders a staggering 200% upside from current levels.

Right now, TAO is grappling with a heavy zone of technical confluence. The price is testing the important 0.618 Fibonacci retracement level — a classic area where reversals often form. Adding to the significance, the anchored VWAP from the start of the downtrend and the Point of Control (POC) — where the most trading volume has occurred — all overlap in this same region. This convergence of technical factors creates a critical decision point for TAO’s next move.

If buyers manage to defend this zone and establish a clear higher low, the conditions for a full bullish breakout will be firmly in place. This would represent the first true bullish structure TAO has seen since its last major peak, making it a setup too important to ignore.

Macro Accumulation Structure Gives Bulls Ammunition

Taking a step back, TAO remains within a broader accumulation range that has quietly developed under the radar for the past several months. Although price action has been messy and corrective, it has respected the upper and lower bounds of the range, creating a clear horizontal structure that often precedes explosive directional moves.

The recent rally from the lower boundary of the range suggests that buying pressure is increasing. Combined with the structural break of the lower high, the odds are rising that this move could evolve into a full-scale range breakout — if, and only if, the critical support zone currently being tested holds firm.

Volume profile data also supports the bullish argument. Recent surges in buying volume, particularly during the impulsive break of the lower high, show that larger players are returning to the market. Sustained accumulation and bullish volume trends are often prerequisites for durable trend reversals.

However, bulls must stay vigilant. A failure to hold above the confluence zone would risk a return to range-bound chop or even deeper correction. That’s why traders will be closely watching for clean higher low formation, strong volume, and bullish market structure confirmation over the coming sessions.

In short, TAO stands at a crucial inflection point. A successful defense of the 0.618 Fib/POC/VWAP zone could unlock one of the clearest breakout opportunities in the altcoin market today, setting the stage for a potential 200% rally that would take TAO back toward its former highs.