Bittensor (TAO) Pushes Toward Breakout With 55% Price Surge

Key Takeaways

• Bittensor (TAO) bounced at the $205 horizontal support area.
• The TAO price has completed a five-wave downward movement.
• Can TAO sustain its momentum and break above resistance?

Bittensor (TAO) has been the biggest gainer in the crypto market in the past 24 hours. The price broke out from a short-term descending wedge and is nearing a new monthly high.

No Bittensor news catalyzed the increase, except for a Grayscale post reminding users of its existing Bittensor Trust.

Nevertheless, the TAO price has reached a 134-day descending resistance trend line. Let’s examine the charts and see if a breakout will happen.

TAO Price Bounces

The weekly time frame TAO price analysis shows that the price has decreased since its all-time high of $777 in April 2024.

Bittensor created a lower high in December 2024 and accelerated its decrease afterward.

Last week, TAO fell to a low of $167, seemingly breaking down from the $205 horizontal support area.

However, TAO bounced, creating a bullish, engulfing candlestick (green icon) and preventing the breakdown.

The bullish candlestick and reclaiming the $205 area are strong bullish signs.

Despite the bounce, TAO did not break out from its descending resistance trend line.

Furthermore, technical indicators are not bullish yet. The Relative Strength Index (RSI) is below 50, while the Moving Average Convergence/Divergence (MACD) is negative.

So, the weekly time frame cannot predict a TAO price reversal.

Will TAO’s Increase Continue?

While the weekly time frame chart is undetermined, the daily chart is bullish.

The technical analysis shows the TAO price broke out from a descending wedge after a five-wave downward movement (red).

While this suggests the long-term trend is bearish, it also indicates that TAO has started a relief rally.

Technical indicators support this move since the RSI and MACD generated bullish divergences (orange) before the breakout.

If the count is accurate, the Bittensor price is in wave A of an A-B-C corrective structure (green).

If TAO’s increase continues the upward movement, the closest resistance will be between $350 and $385.

New Highs Incoming

The TAO price prevented a breakdown from a long-term horizontal support level by bouncing last week.

While TAO has yet to break out from a long-term diagonal resistance, it broke out from a short-term wedge.

The wave count suggests the price may be nearing a local top, but another upward movement is likely afterward.