Bittensor (TAO) Struggles as Price Drops 17%, No Clear Bottom in Sight

Key Takeaways

• TAO shows a slight rebound after a recent sell-off, but indicators suggest the downtrend might persist.
• The token keeps trading below the 20 and 50 EMAs and has validated the lack of bullish momentum.
• Analysis shows that TAO’s price might keep consolidating unless buying pressure around it increases.
• Interested in buying or selling BITTENSOR TAO coin? Read our review of the best exchanges to buy and sell BITTENSOR TAO.

Bittensor’s (TAO) sell-off extended for a fifth consecutive day on Feb. 26, only to show a slight rebound today with a green candlestick. Despite this slight uptick, TAO’s near-term direction remains uncertain.

However, one thing seems clear: the altcoin may remain trapped in a downtrend. Several indicators suggest there is no clear sign of stabilization, making it unlikely that a sustained upward movement will follow.

TAO Trapped in Descending Channel

At the peak of the correction, TAO’s price traded around $315. While it has jumped to $368.62 as of this writing, the daily chart shows that the token remains confined within a descending channel after a 17% decline in the last seven days.

Beyond the pattern formed, one indicator that has kept TAO stuck in the Exponential Moving Average (EMA). The EMA uses changes over time to measure the trend around an asset.

When the indicator is below the price, the trend is bullish, and the price is likely to increase. On the other hand, if the EMA is above the price, it means that the trend is bearish.

On the daily chart, the 20 EMA (blue) and 50 EMA (yellow) are above TAO’s price, indicating a bearish trend. Furthermore, the 50 EMA has crossed above the 20 EMA since Dec. 10 to form a death cross and validate the bearish thesis.

Should this position remain the same, TAO’s price might continue consolidating between $315 and $465 without a breakout.

TAO Price Recovery Not Yet Validated

A look at the 4-hour chart also suggests a similar outlook. During this timeframe, the Awesome Oscillator (AO) is in the negative zone despite flashing green histogram bars.

This position indicates that the bearish momentum around TAO is not yet over. However, the Relative Strength Index (RSI) has broken out of the downtrend, indicating that a double-digit correction is unlikely.

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Still, the RSI reading is below the neutral line, signifying that the momentum is not completely bullish yet.

If this trend continues, TAO’s price might continue trading within the 0.236 and 0..50 Fibonacci levels. However, this could change if the token sees an increase in demand.

To confirm the uptrend, TAO needs to break above the 0.618 golden ratio at $414.88 to confirm the uptrend. If this happens, then TAO could climb toward $463.25.

The cryptocurrency’s value could rise to $524.85 in a highly bullish scenario.

On the flip side, if the token fails to break above the 0.50 Fib level, this might not happen. In that case, TAO could decline to $304.92.