Technical Analysis

8 min read

Bittensor (TAO) Crashes to 10-Week Low With Indicators Signaling Deeper Losses

Published

By Victor Olanrewaju

Edited by Insha Zia

TAO shows fading buying pressure, risking a drop to $250 or lower.

Key Takeaways

TAO’s price has lost nearly 22% in 30 days, and indicators suggest a further decline.
TAO trades in a descending channel and faces strong resistance around $400.
The negative AO and position below the 20 EMA reinforce the bearish outlook.

TAO, the native coin of the Bittensor network, has collapsed to its lowest level in weeks. The price of the TAO coin has plummeted nearly 22% in the past 30 days.

This decline has left the altcoin at $324, with the broader market hoping for recovery. However, a thorough analysis of the altcoin shows that the correction may not be over.

TAO Stays Trapped

In May, TAO’s price attempted to hit $500, but eventually faced rejection. That resistance seems to have put the altcoin in a prolonged correctional phase.

Based on the daily chart, TAO has been trading in a descending channel since then. With intense selling pressure, it could not break above key resistance points.

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As a result, the price of the TAO coin is now at risk of dropping below $300. However, several technical indicators reveal that it might not end there.

A closer look at the chart shows that the red line of the Supertrend indicator is above the price. When the green line of the indicator is below the price, it indicates support.

However, since it is the other way around, TAO’s price faces notable resistance around $400. If this resistance is sustained, the token’s price might struggle to break out in the short term.

TAO coin price analysis — TAO/USD Daily Chart | Credit: TradingView

In line with the signs shown by the Supertrend, the Money Index (RSI) has dropped. The decline in the RSI reading indicates fading buying pressure.

If sustained, this could drive the TAO coin price below $250.

TAO Price Analysis: Prolonged Correction

The technical setup on the 4-hour chart also looks similar to that of the daily chart. The Awesome Oscillator (AO) has dropped to the negative region in this timeframe.

The AO measures momentum by comparing the recent price movement with historic performance. Since the reading is negative, the momentum around TAO is bearish.

Besides that, the image below shows that the altcoin is locked in a symmetrical triangle, indicating indecision between bulls and bears.

However, TAO’s price is still below the 20-period Exponential Moving Average (EMA), reinforcing the cryptocurrency’s weak support.

If this trend continues, the TAO coin price might fail to break above the triangle’s upper trendline. That means breaking the resistance at $347.74 might also be challenging.

In that scenario, the cryptocurrency’s value could slide to $288.65. If validated, TAO risks falling below $200.

Conversely, the token might break above the resistance level if buying pressure increases. If validated, TAO’s price might rise toward $410.23.

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.

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