What to know:
- Bittensor (TAO) price broke below key support, strengthening bearish momentum and increasing selling pressure.
- Analysts say the former support is now resistance, with TAO price needing to reclaim it for a bullish recovery.
- Technical indicators remain bearish, with the RSI below 40 and the MACD under the zero line.
Bittensor (TAO) remains under bearish pressure after breaking below a key support level, signaling continued seller dominance. Technical indicators reflect weak buying momentum, suggesting the downtrend may persist. A recovery above the lost support would improve sentiment, but the overall outlook remains cautious until then.
At the time of writing, TAO is trading at $186.96 with a 24-hour trading volume of $137.18 million and a market capitalization of $2.09 billion. Despite the 3.31% loss over the last 24 hours, the TAO price structure points to a bullish reversal ahead.
Source: CoinMarketCap
Also Read: Can Bittensor (TAO) price Rally to $220 After Double-Bottom Formation?
TAO Price Eyes Further Decline Below Key Level
However, the crypto analyst Alpha Crypto Signal highlighted that the TAO price has broken below a key horizontal support level, weakening its short-term market structure and signaling growing bearish momentum.
The breakdown suggests sellers have taken control, with the former support now acting as resistance. As long as TAO remains below this zone, downside pressure is expected to persist, keeping buyers on the defensive.
Source: Alpha Crypto Signal’s X Post
The recovery of the damaged level would reverse the bearish pattern and imply a strong buying force once again.
In case the bulls regain control of the level, the TAO price may start gathering momentum to move in the direction of $200. Until this happens, the prevailing trend is expected to remain bearish.
Momentum Indicators Support Bearish Outlook
According to TradingView, the TAO price continues to be stuck in an unfavorable trend with reduced highs and lows in multiple attempts at forming a recovery.
The TAO price is hovering around the mark of $186.79, which is right above the vital support region. Breaking below this level may see an increase in losses, but reentering the $195-$200 range will improve bullish sentiment.
Source: TradingView
The technical indicators remain favoring the bears. RSI is positioned at 37.6, which is lower than the neutral 50 but still far from oversold levels and indicating the lack of buyers.
However, the MACD stays in the negative area with flat signal lines, and bears continue maintaining their momentum although the selling pressures have somewhat eased off.
Following the key support break and weak technical indicators, the TAO price is moving in a downward direction. This move is also backed by the general trend in the crypto market as Bitcoin is moving downward.
What Happens Next for TAO?
The TAO price currently finds itself at a crossroads right above its current support zone. A breakout above the $195-$200 resistance zone by the buyers will likely result in a reversal in the bullish pressure on the asset.
However, should the critical level remain unattained, then the downtrend is set to continue while keeping an eye on RSI, MACD, and crypto market conditions.
Also Read: TAO Price Faces Critical $214 Test as 25% Downside Risk Grows
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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