Bittensor (TAO) is showing a potential bull flag pattern, suggesting a bullish continuation for the TAO price if a breakout occurs. The asset is currently in a consolidation phase with tightening volatility and indecisive price action. Technical signals indicate a possible strong upward move once direction is confirmed.
At the time of writing, TAO is trading at $276.67 with a 24-hour trading volume of $241.36 million and a market capitalization of $3.02 billion. Despite posting the 1.64% loss over the last 24 hours, TAO’s price structure points to a long-term breakout ahead.
Source: CoinMarketCap
Also Read: TAO Price Could Sustains a Rally Above $320 Despite Falling Open Interest
TAO Bull Flag Signals $6,600 Potential Breakout Target
Furthermore, the crypto analyst Pure8 pointed out that TAO is currently drawing attention from analysts after a potential bull flag formation has emerged on its weekly chart.
If this bullish continuation pattern is confirmed with an upside breakout, projected technical targets place the token in a wide long-term range between $5,000 and $6,600, suggesting a major expansion phase following consolidation within a broader cycle structure.
With this level of pricing, the figures that make up valuation models indicate significant potential for the TAO price. At a price of $5,000, the market capitalization would be approximately $54.65 billion, whereas at $6,600, it will likely be close to $72.1 billion.
However, if the figures are adjusted to account for full dilution, it falls within the bracket of $105 billion to $138.6 billion.
Source: Pure8’s X Post
However, the supply-side dynamics of Bittensor contribute significant shifts in perspective in terms of these projections.
With 3,600 TAO emitted each day, inflation stands at around 12.5% and is gradually moving the supply to between 12 and 14 million. This makes for an estimated valuation range of between $60 and $85 billion and will play out over a timeframe of 12-36 months.
Technical Indicators Point to Consolidation Phase
According to TradingView, the TAO price is currently experiencing consolidation after reaching its peak in the month of March at around $340.
The token plunged to around $210 in the month of April, but the subsequent upswing could not surpass the old highs, and now the TAO price is standing at approximately $276.18, displaying signs of a short-term battle of bulls and bears.
Source: TradingView
Technically, the TAO price action appears to be trapped within the two major moving averages along with the converging Bollinger bands.
The TAO price is hovering around below the 20-day EMA at $280.65 while sitting firmly atop the 50-day EMA of $275.65. The whole lot positioned itself above the lower Bollinger band, which is priced at $252.10.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
Also Read: TAO Price Rebounds From Accumulation Zone: Is a Rally to $3,000 Imminent?
