Bittensor (TAO) is facing consistent pressure in line with broader crypto market weakness. Over the past 24 hours, TAO has declined by nearly 1.37%. Looking at the weekly performance, the token has fallen 5.59%, highlighting ongoing downside pressure.
At the time of writing, the token is trading at $317.97 with a market capitalization of $3.11 billion. Trading volume has slipped by 3.92% to $89.04 million, reflecting reduced participation. Despite the decline, analysts remain focused on a potential breakout scenario that could reshape momentum in the short term.
Also Read: Bittensor (TAO) Price Analysis: Bullish Flag Pattern Signals Breakout Toward $680
On the four-hour TAO chart, a falling wedge pattern has developed. This formation typically acts as a bullish reversal indicator. Price action is compressing between a downward resistance line and a flatter support line, reflecting diminishing bearish pressure. The token is now trading just below the wedge resistance zone, leaving the token at a critical turning point.
According to crypto analyst @GlobeOfcrypto1, if the token pushes above the $330–$335 region with strong volume, the wedge breakout scenario could materialize. From there, resistance may appear around $340–$345, followed by $370–$380. The pattern projects a possible upside toward $445–$460, suggesting gains of nearly 35% from breakout levels.
Failure to clear resistance, however, would expose TAO to further volatility. This near-term area of support at $310–$312 must hold in place for the bullish setup to remain intact. If broken down here, the psychological level of $300 would be tested.
Derivatives data indicate mixed but stable participation. Open interest dropped by 3.46% to $278.37 million, suggesting exposure lowering among traders. Despite lower levels, participation is strong, indicating speculative activity continues. Volume spikes are linked to short-term swings, which verify strong absorption by traders during wild swings.
The OI-weighted funding rate is slightly positive at 0.0057%. Such data reveal longs still paying the shorts, which suggests weak bullishness. Such near-neutrality, however, also holds risks for abrupt liquidation events. Such phases in the past have served as reset periods before the market commits to a tighter direction.
TAO is at the make-or-break zone. A breakout on the upside above the resistance line would trigger bullish enthusiasm, but failing to maintain support would risk losses. Meanwhile, the market just has to wait for the signal for the next decisive outcome.
Also Read: Bittensor Price Prediction: Can TAO Rally Toward $495 Long-Term?
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