Date: Sat, March 08, 2025 | 10:36 AM GMT
The cryptocurrency market is experiencing a significant downturn, with major altcoins suffering sharp corrections following their rallies in late 2024. Ethereum (ETH), for instance, has dropped from its December high of $4,000 to its current level of $2,100.
Among the hardest-hit altcoins is Bittensor (TAO), an AI-focused token that has seen a steep 49% decline over the past two months. This correction has now brought TAO to a critical support level, where a decisive move could determine its next trend.
Testing Key Support
The weekly chart shows that TAO has been consolidating within a long-term symmetrical triangle pattern. The latest correction, which started on December 2, 2024, after TAO was rejected from the upper resistance of the triangle at $744, has now pushed TAO down to retest its support at $258, from where it has made a slight bounce.
Currently, TAO is trading around the $270 range. If this support holds, the price could consolidate within the red-shaded area before attempting an upward move. A breakout above the 75-day moving average (MA) would confirm renewed bullish momentum, potentially leading to a retest of the upper resistance of the symmetrical triangle.
The MACD indicator is showing early signs of a potential bounce. Although still in negative territory, the MACD line appears to be flattening out, while the histogram is displaying weakening bearish momentum. If the MACD line crosses above the signal line in the coming weeks, it could signal the start of a recovery rally. This would further support the case for a rebound from the current support level.
Potential Breakdown Scenario
If TAO fails to hold this support trendline, another wave of selling pressure could push the price lower. In this scenario, the next major support lies at $170, a level where buyers might step in to prevent further downside.
Final Thoughts
TAO is currently at a make-or-break level, trading at key support within a long-term symmetrical triangle. A bounce from here and a move above the 75-day MA would confirm bullish momentum, while failure to hold could result in further downside toward $170. The MACD indicator suggests that selling pressure is weakening, increasing the probability of a rebound. Traders should closely monitor price action in the coming days to assess the next trend direction.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.
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