Bittensor’s TAO token struggled to hold its ground after failing to surpass the critical $214 resistance level. A sharp reversal seems likely unless buyers regroup and push the price back above this key threshold soon.
Currently, TAO trades around $197.24, a modest 3.11% rise over the past 24 hours, supported by a significant jump in trading volume, which surged nearly 52% to $99.38 million. Despite this recent uptick, the token's weekly performance remains nearly flat, showing only a 0.47% gain.
Pressure Building for TAO
Market analysts expect a deeper pullback, with forecasts suggesting a 25% drop could take TAO down to about $147 within the next month. This projection highlights weakening short-term momentum and a cautious outlook for the token’s near-term trajectory. TAO’s price action reveals it fell back after its failed breakout attempt, notably retreating before it reached the $167.43 support level.
Technical indicators add context to TAO’s struggle. The price currently sits below the 20-day and 50-day exponential moving averages, which stand at $200.30 and $214.10 respectively, while longer-term averages at $229.10 and $247.60 remain well above the current market price, reflecting downward pressure. Bollinger Bands place the middle band near $200.50 and the upper band at $214.80, further underscoring the resistance TAO faces.
Volume data from CoinGlass indicates futures trading volume increased by 21.07% to $220.69 million, yet open interest fell by nearly 10%, suggesting traders may be reducing exposure amid rising uncertainty. The OI-weighted funding rate remains slightly positive at 0.0006%, showing some optimism remains.
