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Bittensor Reaches All-Time High After Binance Listing but Then Falls 25% — What’s Next for the TAO Price?

Last Updated April 12, 2024 3:27 PM
Valdrin Tahiri
Last Updated April 12, 2024 3:27 PM

Key Takeaways

  • Binance announced it will list four trading pairs for TAO on April 11.
  • The TAO price reached an all-time high shortly after the announcement.
  • After a long-term increase, has the TAO price finally started its correction?

The TAO price was finally listed on the Binance exchange on April 11. The announcement caused fanfare and took the price to a new all-time high of $788.4. However, TAO has fallen since, validating the $700 area as resistance.

The pace of the rejection casts doubt in the validity on the increase and raises the possibility that TAO is now mired in a corrective structure.

Binance Lists TAO

On April 11, the Binance exchange announced  it will list four TAO trading pairs: TAO/USDT, TAO/BTC, TAO/TRY and TAO/FDUSD. While users were able to deposit immediately after the announcements, withdrawals went live the next day.

Even though TAO is the 31st largest cryptocurrency, the exchange decided to list TAO with the seed tag. This indicates it is an innovative project but has a higher-than-normal volatility and risk.

Shortly after the announcement, TAO reached a new all-time high price of $788.4. However, it fell over 25% shortly after the announcement and currently trades below $600.

TAO Price Prediction: Has the Correction Started?

The daily time frame analysis shows that TAO created a very long upper wick (red icon) on April 11. The wick validated the $700 area as resistance.

Then, the ensuing decrease confirmed that there have been three deviation above this area so far. Such deviations are often followed by sharp downward movements.

Additionally, the wave count suggests that the TAO price is correcting inside an A-B-C corrective structure. If so, it is currently in wave C and can fall to $410, the 0.618 Fib retracement support level and a horizontal support area.

TAO Price Corrects After All-Time High
TAO/USDT Daily Chart | Credit: TradingView

The MACD and RSI both support this possibility. The bearish divergence trend line in the RSI (green) is still intact and the indicator is below 50. Also, the MACD trades below 0.

So, while a short-term bounce at the minor support at $530 is possible, TAO is expected to continue its downward trend until it reaches $410.

TAO Could Correct Toward $410

Even though the TAO price reached a new all-time high, the failure to sustain the upward movement is an ominous sign. As long as the TAO price trades below the $700 resistance area, it is likely correcting and can fall all the way to $410.

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