After a 43% crash, TAO is testing its 2023 support | Credit: Hameem Sarwar
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Key Takeaways
TAO has broken key supports and is retesting its 2023 accumulation zone.
Momentum remains bearish, with lower highs and sellers defending every rally.
A short-term bounce is possible, but failure to stabilize risks a deeper drop toward $140.
Bittensor (TAO) has plunged sharply from recent highs of $539.00 to its current level of $157.29, marking a 43% drop and breaking through key support zones, now testing its November 2023 support area.
This steep correction leaves the asset at a critical accumulation zone, where buyers may step in to stabilize the price.
Is TAO ready for a potential rebound, or will sellers continue to dominate? Let’s examine the charts.
TAO Coin Crashes, Finds Support
Looking at the weekly chart, TAO is starting to look structurally similar to a late-cycle leader rolling over rather than a healthy consolidation.
After the powerful rally from the defined buy region, TAO’s price rose by 300%.
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However, that move has faded. But one thing to watch out for is that the altcoin is around the bottom after the 2022 bear market.
At press time, the TAO coin has dropped below $160. When it did in November 2023, the altcoin rallied by 327% in less than nine months.
From a historical perspective, it may be time to buy the TAO dip.
However, one of the most important signals here is the failure of successive rallies.
Each bounce since the first major top has made a lower high, with price repeatedly rejected under declining Parabolic SAR resistance.
That tells us sellers are consistently stepping in earlier, a hallmark of a market where smart money is distributing into strength rather than accumulating.
That doesn’t mean the TAO coin can’t bounce, but it does mean rallies are more likely to be sold unless it can reclaim and hold above the range highs near $350.
Until that happens, this chart favors range-bound chop or continued downside exploration.
TAO Price Prediction
On the daily TAO/USDT chart, price action is reinforcing the same bearish structure seen on the weekly chart.
As seen below, the TAO price is stuck in a descending channel and has now pressed into its lower boundary around $160. This area is technically significant because it aligns with the prior cycle’s low support.
However, being at channel support does not automatically imply a reversal.
From a trend perspective, the sequence of lower highs and lower lows is intact.
Every attempt to reclaim key Fibonacci levels has failed. The 0.382 retracement ($294) acted as a hard ceiling, followed by rejection at the 0.236 level ($236), confirming that former support has flipped into resistance.
Furthermore, the MACD is negative, with the signal indicating that bearish momentum has not yet fully reset.
In prior bull-market pullbacks, MACD compression and early bullish crossovers often preceded strong reversals.
However, none of that is present here yet. At the same time, the Chaikin Money Flow (CM)F remains below zero, suggesting rising selling pressure.
Should this trend persist, TAO’s price might decline to $143.50 before a notable rebound. On the contrary, if TAO is going to attempt a meaningful relief rally, it would need to stabilize there.
Breakdown Before Breakout?
While technical indicators suggest potential upside. For instance, crypto analyst Cryptoarena shared on X (formerly Twitter) that the altcoin could still drop to $80 before any meaningful recovery.
“TAO looks strong at $163… but I think a breakdown is coming. A few days ago, I said TAO could revisit the $80 zone, a better area to buy a spot. Many disagreed. That is fine. I still think $80 is possible. On the weekly chart, the price is moving inside a clear range. What stands out is a lower high forming. It’s not perfect, but it’s there if you look closely. There is also a broken structure around $84 that was never retested,” he explained.
Besides that, he also added that a quick bounce could be brewing.
“Markets usually come back to test these levels. If it drops, the move could be fast, maybe a quick sweep. Before the last big pump, TAO ranged for weeks between $47 and $84, then it broke out hard. We could see something similar again. I might be wrong; this is just my view, not advice.” He added.
Disclaimer:
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Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
