TAO shows signs of a rebound | Credit: Hameem Sarwar
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Key Takeaways
TAO’s price finds strong support near $312, signaling rebound potential.
Indicators, including the MFI and MACD, suggest rising buying pressure.
Here is how a break above $354 could push TAO toward $389 or higher.
TAO, Bittensor’s native coin, dropped nearly 5% after its price surged to $350. However, despite the decline, TAO’s price seems to have found support that could help drive a rebound.
At the time of writing, the altcoin is trading at $331.45. However, based on the current trend, the potential bounce may not end at $350, but rather at a higher value. Here is why.
TAO Reclaims Momentum
Looking at the 4-hour chart, TAO’s price printed five consecutive red candlesticks. However, it eventually showed a buy signal after a green candlestick emerged.
As seen below, the emergence of the green candlestick ensured that TAO maintained its support, as indicated by the lower trendline of the ascending channel.
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The Money Flow Index (MFI) has bounced above the neutral line. A rise above 50.00 signifies that bulls are buying the dip.
Hence, TAO’s price is unlikely to break below $300. Despite the bullish setup, one key area to watch is around $350, where the last rejection occurred.
According to the chart, the region appears to act as a supply zone, causing TAO’s price to drop several times. However, if buying pressure increases, TAO might break the resistance and increase trading activity.
Additionally, the green line of the Supertrend is below the altcoin’s market value, indicating that there may be sufficient support to drive the price higher.
At the same time, for this to happen, bulls must defend the crucial support level near $312.93.
TAO Price Analysis: Breakout Intact
On the daily chart, TAO’s price trades within a descending triangle, yet it now appears to be testing the upper boundary of that formation. On previous occasions, this zone was key to determining its next significant move.
Interestingly, the Moving Average Convergence Divergence (MACD) has flashed a bullish crossover, hinting that momentum may be shifting in favor of buyers.
If this trend continues, TAO could break above the $354.52 resistance, confirming a potential reversal from its recent downtrend.
Adding to the bullish setup, the Awesome Oscillator (AO) has begun printing consecutive green histogram bars, a sign that positive momentum is building. This combination of indicators suggests that bulls are gradually regaining control.
If buyers can maintain pressure and volume rises alongside the MACD’s signal line, TAO could target $389.47 next, possibly extending toward $461.04.
However, failure to sustain above the upper trendline could cause the altcoin to retrace toward the $310.57 support level, potentially trapping it in a consolidation phase.
This trend could be worse in a highly bearish scenario, as TAO could decline to $256.19.
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.
