Will Bittensor avoid deeper losses as oversold conditions may slow declines?

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Bittensor drops 7.45% today to $248.3

Highlights

Bittensor trading volume jumped more than 55% above its 30-day average, resulting in higher market participation and liquidity.
The increased activity creates larger and more rapid position changes, leading to intensified short-term price swings.
TAO/USD trades below key moving averages with technical indicators widely oversold, and the expected range is $235.55 to $261.05 with a stronger probability of further downside.

Surge in trading volume intensifies short-term price swings

Bittensor's trading volume surged over 55% above its 30-day average, according to Diariobitcoin, reflecting a substantial increase in market participation and liquidity. This heightened activity can intensify short-term price fluctuations by enabling larger trades and more rapid position changes. Increased volume often accompanies more volatile sessions and may amplify both upward and downward moves, aligning with the recent market dynamics.

Bearish momentum persists below key resistances amid oversold signals

On the technical front, TAO/USD is trading below the MA-20 at $254.67 and MA-50 at $257.41 on the hourly chart, while still holding above the long-term MA-200 at $237.9. The Ichimoku Kijun level at $259.65 stands as immediate resistance. Momentum indicators show broad bearishness: RSI is at 40.82 and MACD is signaling Sell, while ADX is Neutral. RSI, Stochastic RSI, CCI, and Bull/Bear Power are all registering oversold or seller-dominated readings. The Awesome Oscillator is in sync with prevailing sell momentum, and session price action exhibits pronounced weakness amid high volatility.

Downside bias dominates as volatility defines near-term trading range

In the short term, TAO is expected to trade within a range of $235.55 to $261.05, with market probabilities favoring continued downside (71%) versus an up move (29%). The baseline scenario is for sideways price action inside this band, reflecting ongoing volatility. A bullish scenario would require a clear breakout above the Ichimoku Kijun at $259.65, potentially driving a retest of the upper boundary. Conversely, a break below $235.55 could expose further near-term downside risk.

Anton Kharitonov, expert at Traders Union, notes that Bittensor is under heavy short-term pressure after a sharp sell-off and a notable spike in trading volume. He sees technical momentum as bearish, with key moving averages and momentum indicators pointing to ongoing weakness. The analyst remains cautious, expecting volatile and choppy trading within the $235.55–$261.05 range unless a clear breakout occurs. "Until TAO reclaims the resistance at $259.65, any upside is likely to be short-lived and I remain defensive," Kharitonov says.

Earlier, analysts noted that Bittensor was exhibiting strong bullish momentum driven by ecosystem developments and robust trading activity. The latest market action signals a notable shift, with TAO's technical breakdown and surging volume increasing risk for further downside if the $235.55 level fails to hold.

Source of Data: TAO Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.