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Bittensor (TAO) Nears Breakout After 28% Surge Against Triangle Resistance

Published
Nikola Lazic
Published
By Nikola Lazic
Edited by Ryan James

Key Takeaways

  • Breakout nearing: Price approaching descending resistance.
  • Bullish wave setup: Elliott Wave structure suggests impulsive potential.
  • Critical support zone: Holding above 0.5 Fibonacci retracement.

Bittensor (TAO) has recently rebounded from a key support level and is now testing a descending trendline resistance.

The price structure follows an Elliott Wave count, indicating that a potential bullish breakout could be underway.

Fibonacci retracement and extension levels highlight key areas for the next major move.

TAO Price Analysis

The daily chart for TAO illustrates a broad Elliott Wave cycle, with the asset currently within a corrective wave (4).

After reaching a peak near the all-time high of $754 on Dec. 6, the price retraced significantly, finding support around $365, aligning with the 0.5 Fibonacci retracement.

TAO price analysis
TAOUSD interaction with descending resistance | Credit: Nikola Lazic/TradingView 

The recent price action formed a descending wedge, typically a bullish reversal pattern. The Relative Strength Index (RSI) has rebounded from oversold conditions, suggesting that bearish exhaustion is in play.

However, the price remains below the key resistance level at $587 (0.236 Fibonacci retracement), which needs to be broken for further upside confirmation.

The structure indicates that TAO may be completing wave (iv) of a larger five-wave impulse. If this scenario holds, the next upward movement could mark the beginning of wave (v), targeting Fibonacci extensions above $650.

However, a failure to hold above the $400-$399 support zone could signal a deeper corrective phase, invalidating the bullish outlook.

TAO Price Prediction

The 1-hour chart shows a more detailed Elliott Wave count, suggesting that a lower-degree five-wave impulse is in progress. Wave (i) has broken through local resistance, while wave (ii) recently found support near the 0.5 retracement level at $400.

The price is now challenging the descending trendline, and a confirmed breakout above $500 would signal further bullish momentum.

TAO price prediction
TAOUSD | Credit: Nikola Lazic/TradingView 

Fibonacci extension projections place the next targets for wave (iii) at $565 (1.618 Fibonacci extension) and $605 (2.0 Fibonacci extension).

If momentum sustains, wave (v) could extend as high as $671 or even $754, aligning with historical resistance levels.

On the downside, this bullish setup would be invalidated if TAO falls below the recent low of $399.

In that case, the price could revisit the 0.618 retracement level at $316 before finding stronger support.

Momentum indicators suggest increasing buying strength, but RSI is approaching overbought levels, meaning some consolidation may occur before further upside.

A confirmed break above $500-$520 would likely ignite the next wave of bullish price action.

Key Levels to Watch

  • Immediate Resistance: $499 (1.0 Fibonacci level)
  • Breakout Resistance: $565 (1.618 Fibonacci extension)
  • Major Upside Target: $754 (historical resistance, potential wave (v) peak)
  • Immediate Support: $459 (0.618 Fibonacci retracement)
  • Critical Support: $399 (0.5 Fibonacci retracement, invalidation level)

TAO is at a pivotal moment. A breakout above $500 will likely confirm the next bullish wave, while failure to hold $399 could trigger a deeper correction.

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.
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Nikola Lazic

Nikola Lazic is a cryptocurrency analyst and investor working in the industry since 2017. He holds a bachelor's degree in Sociology, which enables him to better understand the psychology behind the crowd´s positioning. Consequently his preferred analytical tool is Elliott Wave Theory in combination with price action analysis. Combining his experience in trading and investing with knowledge in content writing he strives to bring the most accurate and actionable information. Expertise: Cryptocurrencies, Technical analysis, Elliott Wave Theory, On-chain metrics, Research reports.
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