TAO breaks daily downtrend, reclaiming $325–$330 with bullish momentum. Traders eye $400 target while using DCA zones and stop-loss protection. Regulatory risks may slow gains despite strong long-term performance. Bittensor — TAO, has made traders sit up. After weeks of hesitation, the token finally smashed through a key daily downtrend. Price action is showing renewed strength, and traders are already eyeing the next move. With TAO circling closer to the $400 level, questions of sustainability and opportunity dominate the conversation. Today, let’s break down the technicals, explore market sentiment, and highlight the risks ahead for anyone riding this wave. $TAO, took a swing long here.• Break and flip of the 1D downtrend.Keeping some room to DCA in the blue box with Sl as on the chart.#TAO #TAOUSDT pic.twitter.com/SgFCG6EQEk — Scient (@Crypto_Scient) September 10, 2025 Bittensor’s Breakout and Short-Term Setup TAO pushed past resistance that had trapped buyers for weeks. The breakout came after a strong defense of support near $310, where sellers failed to drag the price lower. That turning point feels like a spring uncoiled, setting momentum free. Price has now reclaimed the $325–$330 zone. Traders recognize that area as a supply wall where selling pressure often intensified. Clearing that range signals confidence, and confidence fuels momentum. TAO surged from $323 to $341 within hours, a 5.34% move. This wasn’t noise—it was conviction. Short-term action supports the bullish outlook. TAO gained 3.09% in four hours and 8.03% across seven days. These bursts suggest a growing appetite. However, zooming out paints a nuanced picture. Thirty- and ninety-day windows show losses of -8.82% and -18.73%. The one-year chart records -22.59%. That dip might spook some, but long-term holders see a different horizon. In six months, TAO gained 31.39%. Over one year, the return is 45.21%. Those numbers suggest the foundation beneath short-term weakness still stands tall. Market Sentiment and Risks Ahead Traders are showing optimism. On Binance, the long-to-short ratio sits at 1.4839. That tilt toward longs aligns with the bullish breakout. The next checkpoint is clear: $400. Liquidity pools rest near that mark, and momentum could push price toward it. But if TAO slips below $325, momentum may falter. This setup rewards patience. Swing traders see the blue box as a DCA zone, a place to gradually build exposure. Stop-loss levels protect against sharp reversals, keeping risk in check while leaving space for upside. Trading without boundaries is like sailing without an anchor—thrilling but reckless. Yet the rally carries shadows. Regulatory storms loom, especially if TAO gets labeled a security. That move could choke liquidity and curb participation. Bittensor also operates within AI and blockchain. Data laws and algorithm rules may soon press harder on such projects. Stricter oversight in Asia could rattle investor faith, slowing short-term climbs. Still, technicals show strength, and traders lean bullish. If TAO sustains the breakout zone, $400 isn’t just a number on the chart. It’s a magnet, pulling price action toward it with gravity. Traders who respect the setup, manage risk, and keep eyes open may find opportunity in this swing.