Bittensor (TAO) Approaches $600 but Overbought Signals Suggest a Pullback
TAO price rises over 170% since recent low but is now getting overextended. Will we see a pullback soon?
Key Takeaways
- TAO establishes a higher low, signaling the start of a potential bull cycle.
- The current wave three uptrend may push the price up to $680.
- Expected retracement before a final target of around $780
On March 7, Bittensor (TAO) hit an all-time high of $756, completing its five-wave pattern, and subsequently entered a downtrend.
After finding support and establishing a higher low, the price began a potential new bull cycle, showing signs of an upward trajectory with the possibility of a new all-time high in 2024 or early 2025.
TAO Price Analysis
On March 7, TAO reached an all-time high of $756, completing its five-wave pattern that began in May last year from a low of $34.
Afterward, TAO entered a downtrend, dropping by 73% to $210 by July 5 and forming a descending channel that led to a 0.786 Fibonacci retracement.
It started to recover, only coming to $363 before showing signs of struggle. It reverted to $210 on Aug. 5, even spiking further down, but the daily candle closed above this level, suggesting buyer demand exists around this area.
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We saw another attempt to establish an uptrend ending around $356 on Aug. 25, but its next downturn made a slightly higher low.
Only after it formed this higher low on Sept. 6 did we see a decisive upward movement, leading to a high of $605, increasing by 174%.
According to the daily chart’s Relative Strength Index (RSI), the price of TAO reached an oversold zone, and a reversal could now be expected.
Despite the expected pullback TAO is likely in a new bull cycle, on a trajectory to make a new all-time high later in 2024 or the beginning of 2025.
TAO Price Prediction
The hourly chart shows that the first uptrend from Aug. 5 to 27 and the subsequent higher low are the first two sub-waves of the new five-wave impulse.
This makes the recent rise since Sept. 6 wave three, divided into a lower-degree five-wave pattern.
With its ending wave still in development, there is more room for the upside, potentially reaching $680 before it ends.
After it does, we can expect a pullback for its wave 4 to a target of $487. If the price develops following our projection, one more push to the upside is expected.
Read more: Bittensor Price Prediction 2024: TAO Price Analysis
The current projection’s final target is around $780, but it may vary depending on the depth of the expected retracement for wave 4. Overall, TAO has likely started a new bull phase, with the rise from Aug. 5 being its first major advancement.
The price is getting overextended but the upside room remains in the near term.
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