Bitttensor (TAO) Dips to Key Support Level Amid Correction: What to Expect Ahead?
TAO
Date: Mon, Nov 18, 2024, 12:30 PM GM
The cryptocurrency market is witnessing significant growth in AI tokens like Render (RENDER) and Near Protocol (NEAR), which surged by 42% and 18%, respectively, in the last 30 days. However, Bitttensor (TAO) is moving against the broader market trend, dipping over 15%.
Bittensor (TAO) Dips to Key Support Level
Since hitting a recent high of $625 on November 12, TAO has experienced a correction of more than 20%, with its price currently sitting around $487. This drop has brought TAO into a key support zone between $480 and $492, making this a pivotal point for the token’s near-term price action.
The accompanying chart highlights TAO’s trajectory within a descending channel, which has constrained its movements for the past several weeks. As TAO hovers near the lower boundary of its support range, two possible scenarios unfold:
- Bullish Case: If TAO manages to hold above this support level and rebounds, it could climb toward the upper trendline of the descending channel. A recovery to the $580 mark would represent a potential 19% upside from current levels.
- Bearish Case: If TAO fails to hold this critical support zone, further downside could be in store, with the next significant support level around $409. This would represent a deeper correction of approximately 16%.
What to Watch Next?
The $480-$492 zone remains crucial for determining TAO’s trajectory. Traders and investors should monitor:
- RSI Levels: Currently around 36, the RSI suggests TAO is approaching oversold conditions, which could provide a bullish divergence if buying pressure increases.
- Volume Trends: A spike in buying volume could confirm a reversal, while declining volumes may indicate further bearish momentum.
For TAO to shift its bearish momentum, breaking out of the descending channel will be critical. On the other hand, a failure to hold $480 could lead to increased selling pressure.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before making any investment decisions.
Also Read: WeFi to Enter New Phase of DeFi Following November $WFI Token Generation Event.
