Bittensor (TAO) maintains a bullish price structure on daily and weekly charts but remains capped below the critical $500 resistance, consolidating between $425-$435 as traders await a decisive breakout.
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TAO has rallied 35% in three weeks but failed to surpass the $500 resistance level.
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Bearish divergence between price highs and momentum indicators triggered an 11% price correction.
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Market data from COINOTAG highlights $400 as a strong support zone with potential for bullish reversal.
Bittensor (TAO) shows bullish momentum but faces resistance at $500. Track key support levels and market trends with COINOTAG insights.
Why is Bittensor (TAO) Struggling to Break the $500 Resistance?
Bittensor (TAO) exhibits a strong bullish structure on both daily and weekly charts, yet it has not managed to break the significant $500 resistance level. Despite a 35% rally over the past three weeks, the price has consolidated between $425 and $435, indicating hesitation among traders. This resistance zone remains a critical barrier for TAO’s next upward move.
What Does the Recent Price Action and Momentum Indicate?
The recent price action revealed a bearish divergence where the price made a higher high but the Money Flow Index (MFI) formed a lower high. This divergence led to an 11% price reset, pulling TAO back to the $400 support zone. However, the Chaikin Money Flow (CMF) indicator staying above +0.05 signals continued buying pressure, suggesting that the dip may serve as a healthy correction before another rally.
Source: TAO/USDT on TradingView
What Are the Key Support and Resistance Levels for TAO?
The $400 support zone remains a pivotal level for Bittensor, reinforced by the liquidation heatmap which identifies this area as a strong magnetic point for bullish reversals. Short-term resistance levels to monitor include $420 and $442, where price consolidation is expected before any significant breakout attempt. Traders should exercise patience, avoiding overtrading in lower timeframes during this consolidation phase.
Source: Coinglass
How Did Bitcoin’s Recent Movement Affect TAO?
Bitcoin (BTC) experienced a minor 0.65% price dip on July 28, which contributed to pressure on Bittensor’s price momentum. Since TAO often correlates with BTC trends, this dip added to the consolidation phase and delayed any breakout attempts above $500. Market participants should watch BTC’s trend closely as it may influence TAO’s short-term direction.
Frequently Asked Questions
What are the key support levels for Bittensor (TAO) to watch?
The $400 support zone is critical for TAO, acting as a strong base for potential bullish reversals. Additional short-term support exists near $392, providing traders with clear risk management points.
Why is TAO consolidating between $425 and $435?
TAO is consolidating in this range due to resistance at $500 and recent bearish momentum signals. This pause allows the market to absorb gains and build momentum for a possible breakout.
Key Takeaways
- Bittensor (TAO) shows bullish daily and weekly price structures but remains capped below $500 resistance.
- Bearish divergence triggered an 11% price correction, resetting support near $400.
- Consolidation between $425-$435 suggests accumulation before a potential breakout.
Conclusion
Bittensor (TAO) is positioned for a potential rally, supported by strong buying pressure and key support levels. While resistance at $500 remains a hurdle, the current consolidation phase is healthy for sustained growth. Traders should watch momentum indicators and Bitcoin’s trend closely to anticipate TAO’s next move. COINOTAG will continue to provide timely updates on this evolving market.
