Bittensor (TAO) is under pressure following a failed attempt to break above a significant resistance level, prompting concerns about a potential deeper retracement. The token shows signs of weakening momentum at the start of the week, with key support levels coming into focus for traders and analysts alike.
Sliding momentum raises possibility of further losses
As of Monday, Bittensor (TAO) is trading at $197.24, up 3.11% in the past 24 hours. Daily trading volume has jumped 51.87% to reach $99.38 million. While the weekly gain stands at a modest 0.47%, recent price movements suggest instability around current levels.
Price projections from CoinCodex anticipate a 25.02% decline over the next month, with a target of $147.09 for the TAO token. These forecasts highlight caution for the near term, signaling a risk of the price moving well below current levels if buyers fail to assert control.
| Current Price | Projected 30-Day Price | Percentage Change |
|---|---|---|
| $197.24 | $147.09 | -25.02% |
Analyst CryptoTXG has stated that TAO recently failed to clear a resistance level at $214, suffering a strong rejection and triggering a downward move. Despite the drop, the pullback halted above a critical support at $167.43.
The $167.43 support is expected to be retested, and the token needs to reclaim $214 to avoid further losses. If TAO cannot break above this resistance, a renewed pullback appears likely.
Technical signals reinforce downside risk
Data from CoinGlass shows that futures volume increased by 21.07% to $220.69 million, while open interest dropped by 9.80% to $255.48 million. The OI-weighted funding rate is slightly positive at 0.0006%. The rise in trading activity alongside a decline in open positions points to a cautious sentiment in the derivatives market.
Short-term technical signals reveal that TAO is trading below key exponential moving averages (EMAs). The 20-day EMA is at $200.30, and the 50-day EMA stands at $214.10, both above the current price. The 100-day and 200-day EMAs, at $229.10 and $247.60 respectively, are positioned even higher and form an ascending sequence, underlining broader upward momentum that has stalled in the short run.
| EMA | Level | Difference from Current Price |
|---|---|---|
| 20-day | $200.30 | +$3.06 |
| 50-day | $214.10 | +$16.86 |
| 100-day | $229.10 | +$31.86 |
| 200-day | $247.60 | +$50.36 |
Bollinger Bands provide further context, with the middle band at $200.50, the upper band at $214.80, and the lower band at $186.10. TAO is currently $3.10 below the middle band and $11.30 above the lower band, while trailing $17.40 below the upper band.
Bittensor is an open-source protocol focused on decentralized artificial intelligence (AI) and machine learning, designed to enable a global peer-to-peer neural network. The TAO token powers its network and incentivizes participants contributing computational resources and models.
Mini dictionary: Bollinger Bands (BB), a technical analysis indicator that plots volatility bands above and below a moving average, helping traders identify overbought and oversold conditions.
If momentum continues to weaken and resistance levels remain unbroken, TAO could face a significant pullback toward lower support levels in the coming weeks.
