What to know:
- TAO declines 7.1% today amid sustained bearish pressure.
- The $235 support zone becomes critical for short-term direction.
- Momentum indicators hint at a possible early recovery.
Bittensor (TAO) dropped 7.1% on March 20, extending bearish pressure as sellers continue to dominate the market. However, the token remains up 17.34% on the weekly timeframe, highlighting strong broader momentum despite short-term weakness.
At the time of writing, TAO is trading near $252.4, with 24-hour trading volume at $324.45 million, down 3.92%. Market capitalization stands at $2.69 billion, falling 7.02%, according to CoinMarketCap data.
Also Read: Bittensor (TAO) Break Above $300 Could Unlock a Rally Toward $2000-$3000
Price Structure Signals Mixed Momentum
The daily chart reveals that TAO previously formed a strong base in the $145–$150 zone before entering a bullish phase, breaking prior lower highs and rallying toward $290, as per the crypto analyst Crypto Tony.
However, the price now faces rejection near the $300–$320 resistance zone, which acted as a significant supply area. A softening in the near term may indicate a possible backsliding into the support zone of $235 to $245.
If this zone is strong enough, it may act as a bullish retest, leading to a possible rebound to $300 and then to $320. A breakout through this resistance may allow for more upside momentum.
On the downside, if the price dips below the $235 level, it may trigger a deeper correction towards $200. Similarly, if this level is breached, it may trigger a price fall towards the $180 region, which is considered to be part of the bearish structure.
Indicators Suggest Early Signs of Recovery
The momentum indicators suggest that traders are taking a cautious approach, and hints of an early recovery are in sight. The Relative Strength Index (RSI) is at 48.40, with its moving average around 41.05.
The MACD indicator is showing signs of a budding bullish crossover. The histogram has moved into positive territory at 4.96665, and the MACD line, which is currently at -33.40678, is crossing above the signal line, which is currently at -38.37344.
This shows that the bears are losing momentum, and this could be a possible trend reversal if the buying pressure increases further.
Why This Matters
The movement of TAO around the $235 support level will determine whether buyers take control or if the sellers take charge of the market, moving the asset into a deeper correction.
A sustained move below or above this level could determine the direction of the next big trend, influencing the overall market sentiment towards AI-based crypto assets.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
Also Read: Bittensor (TAO) Eyes $300 Breakout After 41% Weekly Surge
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