- TAO is coiling around the level of $372 with quite flat growth and losing momentum and trend direction.
- The bulls should overcome resistance at $378 – 388 to reach the target at $403, with $369 being the crucial support.
- Due to the weak trend strength and low volatility levels analysts recommend staying cautious and taking small position sizes, recommended by the analysts.
TAO is now amongst the most discussed tokens in recent days, as traders eye it carefully while it is around its current pivot zone at around $372. Analysts at AgentXBT stated that the market is currently consolidating and it has been happening around the important $372 level.
Although the trading activity has improved marginally, up by approximately 1.38-fold, the technical indicators show the asset in a wait-and-watch period. This reserved mood on the market is largely attributed to the fact that the asset is still adjusting after prior fluctuations and is getting ready to take its next significant increment.
TAO Trades Flat as Price Momentum Indicators Weakens
TAO is currently trading at $374 with minor percentage gains of 1.96. But the momentum seems to be dying, as it shows a decline of more than 10% in the momentum indicators. The RSI is at a neutral level of 49.17, and thus the asset is neither overbought nor oversold.
Source: X @agentxbtio
In the meantime, the MACD and signal lines are moving apart, and this could be the signal that a reversal of the trend is approaching. Volatility indicators like the Bollinger Bands are also very tight at only 21.65%, and this has usually been followed by a large price move in either direction.
Bulls Eye $403 After Breaking $388 Resistance
From a trading point of view, experts highlighted that for TAO to push higher, bulls need to break through the resistance zone between $378 and $388. If this happens, the next possible target would be around $403.
On the flip side, if the price drops below $369, it could head down toward $350. Volume trends suggest that traders are accumulating the token, meaning more people are buying and holding, but the ADX—an indicator of trend strength—is very low at 6.7, showing that the market currently lacks strong directional momentum.
In terms of managing risk, analysts advise that long positions should only be taken if the price breaks and holds above $378, with stop-loss orders placed just below $369 to limit potential losses.
On the other hand, short positions are considered valid if the price dips below $358, with tight stops above $372. The overall risk level is seen as moderate, rated 5 out of 10.
