Will a falling wedge pattern extend the correction phase in Bittensor (TAO) to the $400 mark this November?
With a market cap of $3.43 billion, Bittensor is the 33rd biggest crypto. TAO’s price trend is currently struggling to find bullish support as it breaks under the $500 psychological mark.
With a 15% price drop in the last 30 days, the AI token is witnessing an intense pullback. Will this downfall result in a retest of the $400 psychological mark? Let’s find out.
Bittensor Falls Under $474
In the daily chart, Bittensor’s price trend shows a declining phase. The TAO token is struggling in a falling wedge pattern and has dropped nearly 25% in the past 9 days.
The downfall started at $624 on November 12 and has now reached $463. The falling wedge pattern has also breached the 23.6% Fibonacci retracement level at $474.
Despite the broader market recovery, the increasing bearish influence reveals the lack of underlying demand for the AI token. This has resulted in a “death cross” between the 50-day and 200-day EMA lines.
The merging of the 100-day and 200-day EMAs suggests that the bearish trend could continue if the price remains under pressure. However, the TAO price is approaching the support trendline, which could trigger a positive cycle within the wedge pattern, increasing the chances for a bullish reversal and a breakout rally.
Will Bittensor Sustain Above $400?
In a bullish scenario, key resistance levels for Bittensor are at the 50% Fibonacci retracement level ($543) and the 78.6% Fibonacci level ($617). If the trendline support fails to hold, the next significant level to watch is the $413 support zone.
Should the price drop further, the $400 psychological level may provide strong support, potentially initiating a double-bottom reversal, which would favor bullish sentiment.
The 4-hour Relative Strength Index (RSI) is showing bullish divergence, supporting the case for a potential rebound. If this fails, the $400 mark remains a critical support level to monitor for signs of a trend reversal.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
