Bittensor (TAO) Marks Significant Decline Amid Correction: What to Expect Ahead?

Date: Wed, Nov 20, 2024, 05:22 AM GMT

In he cryptocueewncy market, AI-Tokens like Render (RENDER) and The Graph (GRT) have enjoyed a strong week, each climbing over 20%, Bittensor (TAO) is moving in the opposite direction. The token has dropped over 14% in the last seven days and 20% in the past month, signaling a bearish trend despite a bullish broader market.

Source: Coinmarketcap

TAO’s Decline in Focus

Earlier between September and October, Bittensor (TAO) experienced an explosive rally, surging from $220 to a peak of $674—a staggering 208% gain. However, the token has since been trading within a descending channel, marked by lower highs and lower lows.

Currently, TAO is priced at $465, which marks a 25% drop from the recent rejection at $625—the upper boundary of the descending channel. This rejection reinforced the bearish momentum, driving TAO below its critical support of $480.

Key Levels and Scenarios

The chart above highlights TAO's technical trajectory:

• Support Zone: TAO is now hovering around the $460–$466 range, a minor support zone. If it holds, a reversal could drive the token toward $493, a short-term resistance level.
• Breakdown Risk: Failure to sustain this support might lead to a deeper drop toward $409, a 12% decline from the current price.

The Relative Strength Index (RSI) sits in bearish territory, suggesting limited immediate buying pressure.

Outlook

For TAO, maintaining the $460 level is critical to avoid further bearish moves. A breakout from the descending channel, coupled with strong volume, could shift momentum and re-ignite a bullish run. However, without significant market catalysts, TAO's path remains uncertain.

Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before making investment decisions.

Also Read: Keanu (KNU) Meme Token Launches on Pump.fun.