Date: Sat, Oct 19, 2024, 09:45 AM GMT
In the crypto market, Bittensor (TAO)—one of the leading AI tokens—has shown mixed signals. After a sharp rally from $350 to $683 in just last 30 days, the token has faced some selling pressure and currently trading at at $561 price level with a drop of 13% in last 7 days.
But could this recent dip mark the start of a reversal? Let’s dive into the latest performance and what the technical indicators suggest.
Recent Performance and Market Sentiment
TAO surged by an impressive 55% over the past month, catching the attention of many crypto traders. Much of this rally aligns with the growing interest in AI-powered blockchain projects and Bittensor’s unique potential in the space. Institutions are also taking note—Grayscale recently boosted TAO’s allocation to its AI fund, hinting at rising confidence in the project.
Futures trading volumes for TAO have hit record highs, suggesting strong market activity from both institutional and retail investors. Despite this momentum, TAO has now pulled back to $568.45, with some wondering if this marks a temporary correction or the start of a larger trend shift.
Technical Analysis:
Currently, TAO’s price action has formed an upsloping flag pattern, a structure often seen before major breakouts. The token has repeatedly bounced off its trendline support, and once again, TAO is trading exactly at its support level around $560.
If this level holds, we could see a bullish reversal, with TAO potentially climbing back toward $740—a 30% jump from its current price. However, if the support level fails, the token may drop below $500, which could further delay any recovery.
What to Expect Next?
- Bullish Scenario: A bounce from $560 support could trigger renewed buying interest, leading TAO to aim for $740.
- Bearish Scenario: If the trendline breaks, a decline below $500 might be on the cards.
For now, TAO traders are watching closely to see if the support holds and the token finds new strength.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research before making any investment decisions.