The price of Bittensor (TAO) has surged by nearly 20% in the past 24 hours, showing signs of renewed investor interest. Technical indicators now suggest a possible trend shift as TAO approaches crucial resistance levels.
Key Resistance Ahead for TAO in Ichimoku Cloud
The Ichimoku Cloud shows TAO nearing a critical resistance zone, signaling potential obstacles ahead. While the cloud’s red color indicates lingering selling pressure, it also points to strong resistance that TAO needs to break to confirm a bullish trend.
If TAO breaks above this cloud resistance, it could pave the way for continued gains. However, failing to do so could result in renewed selling pressure, potentially halting its current upward momentum.
TAO’s RSI Enters Overbought Territory
TAO’s Relative Strength Index (RSI) has spiked to 74.51, rising sharply from 30 within a day, reflecting increased buying activity. The RSI measures price momentum, and values over 70 typically indicate overbought conditions. This recent jump suggests a short-term correction may be due before TAO can attempt further gains.
TAO Price Prediction: Correction or Continued Rally?
Currently, TAO’s Exponential Moving Averages (EMAs) reflect a bearish alignment, with long-term EMAs above the short-term ones. However, the recent price surge has narrowed this gap, hinting at a shift in momentum. If the short-term EMAs cross above the long-term ones, it could signal a bullish reversal.
Before that shift occurs, TAO may undergo a short-term correction, potentially testing support levels around $490 and $458. If buying momentum resumes post-correction and the short-term EMAs cross over the long-term ones, TAO could rally toward higher resistance targets at $556, $618, and $682. This potential uptrend could see TAO achieve up to a 33% upside if conditions remain favorable.
In summary, Bittensor’s recent price action indicates renewed interest and potential for growth. However, key resistance levels and potential corrections could shape TAO’s next moves.
