Bittensor (TAO) Unlikely To Rhyme With History Despite Bounce From September 2024 Lows

Key Takeaways

• TAO’s price has increased by 15%, but the daily chart shows bearish momentum.
• This setup contradicts what happened after the price reached similar levels in 2024.
• TAO’s 4-hour analysis shows that the rebound might still extend in the short term.
• Interested in buying or selling BITTENSOR TAO coin? Read our review of the best exchanges to buy and sell BITTENSOR TAO.

Bittensor (TAO) is one of today’s top gainers in the market, climbing by 15% in the last 24 hours. This TAO’s price rebound comes two days after it plummeted to $225.

The last time the AI-themed token reached $223 was in September 2024. While this recent bounce may have provided some short-term relief, the broader market conditions and a decline in several indicators’ readings suggest that TAO may struggle to repeat past performance.

TAO’s Bounce Lacks Last Year’s Strength

Year-to-date (YTD), TAO’s price has dropped by 45%. However, the last 24 hours have seen the cryptocurrency rise from $235 to $267.

Before that, TAO plunged to $223 on Monday, March 10, rhyming with its correction in September 2024.  After reaching $223 at that time, the token’s value soared, and by October of the same year, the price had reached $635.

One reason TAO performed that well was the position of the Moving Average Convergence Divergence (MACD). As seen below, the 12-day Exponential Moving Average (EMA), in blue, crossed above the 26 EMA (orange), forming a golden cross.

This golden cross confirmed the bearish to bullish trend and drove TAO to $635. But today, despite the rebound, the MACD reading is negative, indicating bearish momentum.

Besides that, the 12 EMA remains below the 26 EMA, signifying a bearish trend. Therefore, if the trend remains the same, TAO’s price might struggle to sustain this uptrend.

However, the TAO/USD 4-hour chart presents a different bias from that observed on the daily timeframe.

TAO Price Analysis: Short-Term Gains Possible

According to the 4-hour chart, TAO’s price trades within a descending channel. However, the key indicator shows the token could be on the verge of a bullish breakout.

First, the Relative Strength Index (RSI), which reached an oversold level on Monday, has crossed above the 50.00 neutral line. The RSI measures momentum using the size and speed of price changes.

When it falls, it indicates bearish momentum. Since it has risen, it indicates a bullish momentum around TAO.

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Like the RSI, the Money Flow Index (MFI) has flashed a similar signal. As of this writing, the MFI, which gauges buying and selling pressure, has risen to 60.00, indicating increasing buying volume around the token.

Should this remain the same, TAO’s price might break above the upper trendline of the descending channel. If validated, this could lead the cryptocurrency’s value to $356.84, near the 0.618 golden ratio.

Still, it will unlikely repeat last year’s rally to $635. But if buying pressure intensifies, TAO could climb past $400.

However, if the MFI and RSI readings are retraced, this might not happen. In that scenario, the altcoin’s value could drop below the channel’s lower trendline and slide to $213.44.