Bittensor (TAO) Price Eyes All-Time High After Reclaiming Key Resistance

Key Takeaways

• Bittensor (TAO) reclaimed a critical resistance level.
• The TAO price trades less than 30% below its all-time high.
• Can TAO sustain its increase and reach a new all-time high?

TAO was one of the best-performing cryptocurrencies to end 2023 and start 2024, reaching its all-time high price in March. Its performance alongside that of the Artificial Superintelligence Alliance (FET) led to the belief that an altcoin season could begin for AI tokens.

However, this has not been the case at all, since TAO fell sharply after March, dragging the AI market alongside it.

Nevertheless, the price has recovered since August and is only 30% below its all-time high. Will TAO reach it, and what’s next if it does? Let’s find out.

TAO Price Reclaims Resistance

The weekly time frame TAO chart shows that the price broke out from a long-term descending resistance trend line in July. Then, it returned to validate it as support (white icon) before resuming its upward movement.

TAO’s increase led to a high of $681.87 in October, causing a breakout from the $530 resistance area. This was a critical level since it is both the 0.618 Fibonacci retracement resistance level and a horizontal resistance area.

After a brief decline below it, the TAO price created a bullish engulfing candlestick in the first week of November, confirming the area as support again. There is no more resistance left until the all-time high.

Technical indicators support the increase. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are above their bullish thresholds at 50 and 0 and both are moving upwards.

So, the weekly time frame suggests that TAO will eventually reach a new all-time high price.

What Analysts Are Saying

TAO sentiment on X is extremely bullish. Gem Hunter suggests that TAO will reach $1,000 soon, triggering a full-blown AI season . CryptoGodJohn has the same sentiment. He believes TAO will lead the way for other AI tokens as soon as the price breaks out from the current resistance.

TAO Daily Chart | Credit: X Since the price moved above the middle of its range, GeorgeTrader predicts  it will increase toward a new all-time high. AMCrypto is also bullish  and predicts a TAO high above $1,000.

With that in mind, let’s look at the wave count and see how likely these predictions are.

TAO All-Time High

The most likely wave count suggests that TAO has started its upward movement’s fifth and final wave (white). Both waves five and three have extended, and the sub-wave count is in black. According to the count, TAO is in sub-wave five, meaning the current increase is the final one before a major correction.

The first target for the top of the upward movement is at $1,132. This is created by the 1.61 external Fibonacci retracement of wave four and by giving sub-wave five the same length as sub-waves one and three combined.

If wave five extends, TAO can reach a high of $1,734. The target is created by the 2.61 external Fibonacci retracement level of wave four. After TAO reaches the high, the price could go through a major correction.

Parabolic Rally Soon

The weekly time frame price action, wave count, and indicator readings are all bullish.

TAO has broken out from its final horizontal resistance area and could accelerate its increase once it clears $700. The first target for the all-time high is at $1,132.

About the Author

Valdrin Tahiri

Valdrin discovered cryptocurrencies while getting his MSc in Financial Markets from the Barcelona School of Economics in 2017. He has been an avid investor and trader since. Valdrin has written for several cryptocurrency media companies such as BeInCrypto and CoinGape.

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