What to know:
- TAO price held near $234 support as analysts warned of a possible Wave 2 correction.
- TradingView data showed TAO price below key EMAs, with the 20-day EMA at $274.5.
- RSI at 41.21 signaled weak momentum as buyers failed to reclaim neutral trend levels.
Bittensor (TAO) price entered a critical technical phase on Friday, May 29, 2026, as the coin held near a key breakdown zone. Traders focused on the April low, where a confirmed break could weaken the short-term structure and shift attention toward deeper support levels.
As of press time, Bittensor trades at $256.71, showing a modest 0.12% gain over the past 24 hours. CoinMarketCap data showed its trading volume at $243.27 million, while market capitalization stood at $2.81 billion.
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TAO Price Correction Risk Grows as Momentum Fades
Crypto analyst MCO Global DE highlighted that the chart is at a decision point. The main level is the April low at $234. If it fails to support below the level, the probability of Wave 2 beginning increases. This would place TAO within a larger correction phase.
The analyst said the bullish case still needs cleaner confirmation. The five-wave structure has not been established in Wave 1. Another high would improve that count. It would also validate the longer-term bullish perspective prior to a broader Wave 2 pullback.
This risk case is gaining weight due to the waning momentum. There have been no solid signs of an ongoing impulsive uptrend recently. The TAO price must hold above key support to avoid a deeper move. If it breaks below $234 and sustains the move, it will bring attention to the lower levels.
Support levels are now placed at $250.95, $234, $207.53, and $176.05. Resistance stands at $265.28, $330, $380, and $428. The $234 level is the primary break level. However, if it fails, then the $208 to $176 support levels will come into play.
In the short term, the TAO price is stuck in a possible recovery attempt and a deeper correction setup. The possibility of another high can enhance the bull market structure. If the support fails, it would benefit the correction.
TAO Price Stays Below Key EMA Levels
According to TradingView data, EMA data showed pressure across the short-term trend. The 20-day EMA stood at $274.5. The 50-day EMA stood at $274.0. Both levels were above the TAO price. This indicated that the token has not retaken the short-term average area.
The longer EMA readings remained above the market. The 100-day EMA was $267.9. The 200-day EMA was $274.4. These values moved the TAO price below the major trend markers. If it moves above $267.9, that would be the beginning of easing that pressure.
The Relative Strength Index (RSI) data also pointed to weak momentum. The 14-day RSI stood at 41.21. The RSI average line is at 45.44. Both readings remained below 50. This was a sign of limited buying strength that resulted in a cautious technical position for the TAO price.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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