Bittensor (TAO) faced bearish sentiment, as analysts pointed to weak momentum and the lack of a confirmed price bottom, increasing the risk of further downside in the near term. The bullish trend remains weak, while price action continues to be capped between key support and resistance levels.
At the time of writing, TAO is trading at $249.32, with a 24-hour trading volume of $382.21 million and a market capitalization of $2.73 billion, according to CoinMarketCap data. The token has declined by 2.86% over the last 24 hours.
Source: CoinMarketCap
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Bittensor Range Holds Between Key Levels
A prominent crypto analyst, More Crypto Online, said in an X post that there has been no visible change in the structural pattern of TAO. The price is under pressure and is trying to hold on to the important Fibonacci level.
Source: More Crypto Online’s X Post
The April rally does not possess much strength, suggesting that the rebound might not be sustainable and that the price pattern can weaken further. Should the sell-off persist, the next major support level stands around $226.70.
However, on the bright side, the level of resistance still holds strong at $282-$283. Breaking through this level would signal a change in the trend direction and revive hope for a more strong rally.
Momentum Indicators Show Uncertainty
The technical signals remain mixed. Currently, the Relative Strength Index (RSI) stands at 45.53 and still lies below the neutral zone. This implies low momentum; however, there has been a slight improvement in the RSI readings.
The Moving Average ribbon shows the same thing, i.e., the indecisiveness. The price is currently trading close to the $251 mark but is encountering resistance at the range of $275.40 to $276.12. On the downside, the support level is located close to the $233.58 mark.
Source: TradingView
MACD is also making positive signs in its chart. The MACD line at 0.82 is approaching the signal line that stands at -7.13. However, the histogram is still negative at about -7.96 levels. This indicates that bearishness is still prevalent despite positive signs from MACD.
Overall, although there are initial signs that a bottoming process is underway, the bigger picture still shows weakness. In order for TAO to form a sustained rally, there needs to be some improvement in buying interest along with a clear breakout through critical resistance levels.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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