Key Takeaways
- TAO broke out of a bullish pennant, confirming the end of its consolidation phase and potentially kicking off a new leg up.
- The MACD has flipped positive, and the AO formed a bullish twin peak, both pointing to strengthening upside momentum.
- TAO’s price has cleared resistance at $295.94; hence, if momentum holds, it could climb to the 0.618 Fib level close to $400.
After plunging below $200 in early April, Bittensor’s (TAO) price has staged a powerful comeback, surging by 30% in the past week. At press time, TAO traded at $321.60 —its highest since March 3.
This makes it the second-best performer among the top 100 cryptocurrencies. With bullish momentum building, market participants are watching closely to see if the AI-themed token can sustain this performance.
In this analysis, CCN breaks down the key catalyst behind TAO’s strong performance and what might be next for its price action.
TAO Leaves Bears Behind After Correction
Between Feb. 21 and April 8, TAO’s price dropped from $468 to $180. This decline eventually led to the formation of a bullish pennant, which the altcoin has not broken out of.
A bullish pennant is a pattern that appears after a strong upward price move (called a flagpole), followed by a brief consolidation phase with converging trendlines, after which a breakout upward resumes the bullish trend.
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As seen below, the flagpole formed as TAO jumped to $468. Later, the correction and consolidation helped to converge the upper and lower trendlines.
From CCN’s observation, TAO broke out of a converging triangle on rising volume, as a bullish engulfing candlestick pushed the price above the key $200 resistance level.
The daily chart shows that the Moving Average Convergence Divergence (MACD) has risen to the positive region. MACD reveals changes in direction, momentum, and trend.
When the reading goes from positive to negative, momentum is bearish. However, since it is the other way around, the momentum around TAO is bullish.
In addition, the Awesome Oscillator (AO) has formed a bullish twin peak. A bullish twin peak forms when the AO waves dip below the zero line twice, but the second dip is smaller and followed by a green dot, indicating a bullish reversal might be starting.
Should this trend remain the same, then TAO’s price might climb much higher in the coming days.
TAO Price Analysis: Rally Gains Strength
In terms of the short-term targets, the Supertrend confirmed the bullish bias. Typically, when the red line of the Supertrend is above the price, it indicates notable overhead resistance.
However, in this case, the green line of the Supertrend is below TAO’s price, with the token breaking above the $295.94 resistance. If the trend remains the same, the altcoin’s value might climb to the 0.618 golden ratio at $392.59.
Once validated, the token’s next target could be a run above $400 and probably a rally to $460.49.
However, if the volume around TAO drops, the price could slide below the lower boundary of the pennant, potentially to $172.81.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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