Bittensor (TAO) is trading under pressure on Thursday, February 5, as the token is in a “no trade zone,” implying that investors will experience difficulties in trading the asset in the short term due to the current downtrend. TAO is experiencing difficulties in regaining its momentum in the crypto market.
At the time of writing, Bittensor (TAO) is trading at $191.07, according to data from CoinMarketCap, with a 24-hour trading volume of $227.65 million and a market capitalization of about $2.0 billion. The price has fallen by 6.81% over the last 24 hours and has now fallen by 19.57% for the week.
Bittensor (TAO) Faces Trading Range Pressure
According to a technical analysis update provided on February 5 by crypto analyst Cryptopulse, TAO does not have any high-probability trading setup at the moment. Cryptopulse pointed out that the price action on the 3-hour chart indicates a rectangular range, which often indicates indecision.
Based on the analysis, the support is currently holding at between $182 and $185, while the resistance is currently capped at between $201 and $204.
Therefore, since TAO is currently trading at the midpoint, Cryptopulse termed this region a grey zone since the risk-to-reward conditions are unfavorable for trading long and short positions.
Cryptopulse also commented that a break below the level of support could cause a quicker rate of decline, and any advance towards the level of resistance could potentially provide better opportunities for short selling, unless volume is strong.
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TAO Remains Technically Weak
In the larger time frame, Bittensor still presents various signs of structural weakness. The Relative Strength Index (RSI) on the weekly chart is still close to the 37.19 mark and is below the 50-level mark, suggesting that bearish momentum still prevails.
Price action remains well below key moving averages. The 20-week SMA is near $302, the 50-week SMA is near $326, and the 100-week SMA is near $381. All these moving averages are above the price, and this only confirms the downtrend.
The momentum indicators also support the negative view. The MACD remains negative as the MACD line is close to -29, and the signal line is at -41. The histogram is also in the red at -11, indicating that the strength of the bearish momentum has not diminished.
Significantly, no bullish crossover has occurred, implying that the sellers are still in charge unless the momentum begins to stabilize.
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