Bittensor (TAO) remains in a recovery phase with bullish technical signals intact, but weakening derivative activity and declining trader participation indicate fading short-term pressure for the TAO price and growing market caution around key support levels. According to CoinMarketCap, TAO is trading at $305.10 with a weekly gain of 2.78%.
Source: CoinMarketCap
TAO Derivative Data Point to Declining Momentum
According to Coinglass, the TAO open interest dropped by 9.79%, settling at $412.42 million. The decline reflects a reduction in outstanding derivative contracts, which may indicate traders are closing positions, lowering exposure, or showing uncertainty about the market’s short-term direction and future price movement expectations.
Source: Coinglass
However, trading volume declined by 13.99%, bringing the total volume to $984.97 million. This decrease suggests reduced market activity and lower participation from traders, potentially indicating cautious sentiment or weakening momentum across the market.
Also Read: Bittensor (TAO) Price Analysis: Inverse H & S Pattern Points to $524 Rally
TAO Price Risks Further Decline if $282 Support Fails
Furthermore, the data from More Crypto Online pointed out that the TAO price is at a critical juncture where it faces a significant resistance level that has halted its progress and caused a retreat in the markets.
The rejection is expected since the digital asset had witnessed a strong surge during the earlier part of the week. However, despite the drop, the present retracement seems to be a correction of three waves instead of a bearish reversal.
Source: More Crypto Online’s X Post
Traders have their eyes set on the $282.30 level, which is viewed as the key support level that could decide the fate of the TAO price over the coming period.
Any move below this level could bring the token back into bearish mode, with the April lows as the new target. There are indications that the TAO price might be approaching its top.
TAO Technical Indicators Point to a Recovery Phase
According to TradingView, the TAO price shows an impressive recovery rally around the end of February, reaching from $150.00 to above $360.00 before late March.
Following a drop and consolidation in April near the 200-day EMA level of $266.52, TAO continued to recover and rose to $305.14. The asset is currently trading above all important EMAs, indicating a strong bullish technical setup in the short term.
Source: TradingView
Technical indicators show a bias for a neutral to bullish outlook since this market is still getting its feet on the ground. This token’s RSI value currently sits at 58.13, indicating slight uptrend momentum but still within safe limits of being oversold.
The token’s 20-day exponential moving average (EMA), valued at $292.04, can serve as a support level, with resistance levels around $320.00.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
Also Read: Bittensor Price Prediction: Can TAO Break $500 After Bullish Breakout?
