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Bittensor Price Bounces 40% – Wave Count Anticipates TAO Breaking Past 77-Day Resistance

Last Updated May 23, 2024 2:26 PM
Valdrin Tahiri
Last Updated May 23, 2024 2:26 PM
By Valdrin Tahiri
Verified by Peter Henn

Key Takeaways

  • The Bittensor (TAO) price has fallen inside a descending parallel channel for the past 77 days.
  • TAO bounced on May 1 and has increased 40% since, reaching the channel’s resistance.
  • Can TAO finally break out above this resistance trend line, or is another rejection likely?

TAO reached a high in March but has declined since. The decrease has been very gradual and is contained inside a descending parallel channel, which is common in corrections.

After three failed breakout attempts, TAO is once again attempting to move above the channel’s resistance trend line. What will be the implications if it does, and will this allow the price to finally move to a new all-time high?

Bittensor Attempts Breakout

The daily time frame TAO price chart shows a downtrend inside a descending parallel channel since March 7. The decline culminated with a low of $337 on May 1, validating the channel’s support trend line (green icon).

The Bittensor  price has increased since, moved above the channel’s midline on May 21 and is currently attempting to break out. However, the channel’s resistance trend line coincides with the 0.382 Fibonacci retracement resistance at $493. It rejected the price today on May 23 (red icon). The channel has existed for 77 days.

TAO Price Breakout
TAO/USDT Daily Chart | Credit: TradingView

Despite the inability to break out, technical indicators give a bullish reading. Firstly, the RSI broke out from its bearish divergence trend line (green) and increased above 50. Secondly, the MACD generated bullish divergence (yellow) and is moving above 0. Both are signs of a bullish trend.

As a result, the indicator readings suggest TAO will break out from its channel. If that happens, the next resistance will be at $594.

TAO Price Prediction: Is the Correction Over?

The wave count aligns with the positive indicator readings, predicting a breakout. Counting from the March 7 high, TAO has completed an irregular, flat A-B-C correction (white). In it, waves A:C had a 1:1.61 ratio, the second most common in these structures.

The fact that the correction is encompassed inside a parallel channel and that it ended between the 0.5-0.618 Fibonacci retracement support levels favors the possibility that it is over.

TAO Wave Count
TAO/USDT Daily Chart | Credit: TradingView

If this is the case, Bittensor will break out from the channel and reach the 0.618 Fibonacci resistance at $611, an increase of 35% from the current TAO price. If this happens, it will confirm the TAO price has started a new five-wave increase (yellow). The entire movement could take Bittensor to its all-time high of $778.

Despite this bullish TAO price prediction, a rejection from the channel’s resistance trend line can deepen the correction. In that case, TAO will likely fall to the channel’s resistance trend line at $275, a fall of nearly 40%.

TAO Breakout Puts All-Time High in Play

There are numerous signs pointing to a completed TAO correction. However, a channel breakout is needed to confirm this hypothesis. If it happens, TAO will likely increase to at least $611 and possibly $768. Conversely, inability to break out can trigger a 40% drop.

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