Bittensor tests $290.07 support: Technical outlook

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Bittensor slides 7.37% today to $304.2

Highlights

TAO trading volume has exceeded the monthly average by 49 percent as interest in artificial intelligence tokens jumps.
Increased market activity has brought higher liquidity and price volatility, but TAO remains under broad selling pressure.
TAO trades below key moving averages with strong bearish momentum signals and projects a 67 percent probability of further declines within a $290.07 to $350.9 range in the next 2 to 3 days.

Surge in AI token trading boosts liquidity despite sustained selling

Recent trading in TAO has been marked by increased demand for artificial intelligence tokens, as noted by Diariobitcoin, with trading volumes surpassing the monthly average by 49%. This surge in volume reflects more active participation in the Bittensor market, contributing to elevated liquidity and heightened price swings. Although such volume typically supports market depth, price action has remained under broader selling pressure.

Negative momentum persists as TAO tests resistance near recent lows

TAO/USD is trading below the MA-20 at $320.41 and MA-50 at $322.11, but well above the MA-200 at $245.45. The Ichimoku Kijun sits at $320.2, acting as immediate resistance. Momentum indicators on the H1 timeframe are bearish, with MACD and ADX registering sell signals and negative Bull/Bear Power showing sellers in control. RSI, CCI, and Stoch RSI are all in the oversold range, while the Awesome Oscillator reinforces the downward momentum. Price has gapped negatively by $8.7, trading close to today's low amid heightened volatility.

Sideways action favored with downside risk as volatility persists

Over the next two to three trading days, TAO is forecast to move within a volatility band of $290.07 to $350.9. There is a 67% probability of further downside, compared to a 33% chance of a rebound. The baseline scenario anticipates sideways action inside this range. A bullish break above $320.2 could open the door to further gains, while a fall below the $290.07 support would likely trigger additional declines.

Anton Kharitonov, analyst at Traders Union, sees trading pressure persisting in TAO despite heightened demand for AI-linked tokens and a sharp rise in volume. He notes that key technical levels remain unclaimed, with negative momentum dominating and sellers in control. The analyst remains defensively positioned, citing downside risks if support at $290.07 fails. "With current momentum bearish and resistance at $320.2 holding, I view the environment as favoring caution until price structure improves."

Earlier analysts noted that Bittensor's strong ecosystem development and commercial revenue growth were driving notable upside momentum in the asset. However, the current technical outlook signals a shift, making the $290.07 support a critical threshold to monitor for potential further downside risk in the near term.

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.