Bittensor’s native token TAO is experiencing declining momentum after failing to break a critical resistance level, raising concerns about a possible pullback. The technical setup suggests that unless buyers reassert control and drive TAO above the key level, a further downturn could unfold.
TAO Struggles at Resistance, Analyst Sees Risk of Pullback
TAO is currently trading at $197.24, a 3.11% gain over the last 24 hours, with trading volume surging by 51.87% to $99.38 million. Despite this short-term uptick, over the past week, the price has risen only 0.47%, according to CoinMarketCap.
Market observers note that the token encountered heavy rejection at the $214 resistance level. Analyst CryptoTXG emphasized the significance of this failed breakout, which led TAO lower. The price eventually stabilized before reaching the $167.43 support, but the analyst expects that this level will likely be tested unless the token regains momentum.
CoinCodex projects a further decline for TAO, forecasting a 25.02% drop over the next 30 days to $147.09. This outlook reflects concerns about weaker short-term momentum and the possibility of continued selling.
Analysts highlight that TAO must recover the $214 level to reduce the risk of deeper losses. Should buyers fail to drive the price above this resistance, the likelihood of a pullback becomes increasingly probable.
The current technical outlook is reinforced by trading data from platforms like CoinGlass, which reports a 21.07% increase in futures volume to $220.69 million, while open interest fell 9.80% to $255.48 million. The OI-weighted funding rate remains slightly positive at 0.0006%, suggesting some optimism among traders despite recent volatility.
Technical Indicators Point to Caution
TradingView analysis indicates that TAO is trading below the short-term exponential moving averages (EMAs), with the 20-day EMA at $200.30 and the 50-day EMA at $214.10. The token also lags behind the 100-day and 200-day EMAs, which are set at $229.10 and $247.60, respectively. These moving averages form an ascending sequence, yet all remain above the current price, signaling continued bearish pressure.
Bollinger Bands data shows a middle band at $200.50, with the upper and lower bands at $214.80 and $186.10. TAO is now trading $3.10 below the middle band and $17.40 below the upper band, while remaining $11.30 above the lower band. This positioning within the bands further suggests that market momentum favors the downside as long as resistance levels hold.
Given these technical patterns, many traders are closely watching for either a decisive rebound or confirmation of a deeper correction. Monitoring market developments and key support levels remains crucial for participants.
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Market volatility remains a defining characteristic of the crypto sector. Investors are advised to stay informed and adjust strategies as the technical outlook evolves.
CoinCodex forecasts that TAO could reach $147.09 by the end of 30 days, projecting a significant pullback from current levels if current trends persist.
