Bittensor (TAO) price has dropped to its lowest value in eight months, reaching $205 for the first time in August 2024. This decline occurred after the cryptocurrency price collapsed by 60% at the beginning of this year.
Typically, corrections like this mark the bottom and foreshadow a rebound. However, this does not seem to be the case for TAO, which is facing intense bearish sentiment.
TAO’s price attempted to hit $800 in December 2024. However, it faced rejection and aligned with the broader altcoin correction.
This year, its highest point is near $600, while it continues to hit lower highs and lower lows. On the daily chart, TAO has formed a descending channel, indicating that a recovery in the short term is unlikely.
In line with this sentiment, the Awesome Oscillator (AO) reading has dropped to the negative region. The AO measures momentum by comparing historic price movements with recent ones.
When the reading is positive, momentum is bullish. However, a negative AO rating indicates that momentum is bearish, which is the case with TAO.
Should this trend remain the same, TAO’s price might experience another decline. In addition to that, the Ichimoku Cloud has risen above the altcoin’s value
The cloud’s position indicates that TAO faces resistance at higher levels. As such, the Bittensor token is likely to drop below $200 soon.
Another assessment of the TAO/USD daily chart shows that the dots of the Parabolic Stop And Reverse (SAR) have risen above the price.
When the indicator’s dots are below the price, it is a buy signal. In that instance, the price increases. However, this current position indicates otherwise, aligning with the thesis that TAO’s price has encountered resistance.
Beyond that, the Relative Strength Index (RSI) has also dropped below the 50.00 neutral line, which indicates bearish momentum.
Thus, if the momentum remains the same, TAO’s price might find it challenging to bounce toward the overhead resistance at $330. If that is the case, the cryptocurrency value might not get anywhere near $400 in the short to mid-term.
Should that be the case, the token might fall to another low point, possibly toward the $150 mark. If that is the case, then TAO will be confirmed to be in a bear market.
Still, market participants should watch out for key resistance levels.
For instance, if buying pressure increases, the prediction might be invalidated as TAO’s price might rise toward $410.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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.
