Bittensor (TAO) had a strong run in September, with its price soaring 111%, climbing from $264 to $587. However, as October begins, technical indicators suggest that TAO might face resistance, potentially slowing down further gains.
Will TAO Struggle in “Uptober”?
Historically, October has been a bullish month for many cryptocurrencies, often referred to as “Uptober.” While there are expectations for TAO to continue its upward trend, several indicators suggest a challenging start to the month. The altcoin’s impressive rise in September was closely tied to developments in the Artificial Intelligence (AI) sector, driving significant price volatility.
TAO May Soon Be Overbought
One key indicator pointing to potential resistance is the Bollinger Bands (BB) on the daily chart. BB expansion during periods of high volatility is typical, and TAO’s price movements reflect this. The current price of $585.50 is nearing the upper band, which could indicate an overbought condition if it climbs to around $660. Once overbought, the token may face a pullback.
From an on-chain perspective, TAO’s social dominance is another critical factor to watch. This metric measures how much attention a cryptocurrency is receiving compared to others in the top 100. Currently, TAO’s social dominance is declining, signaling that investor interest may be shifting. If this trend continues, the token’s price could lose momentum and consolidate.
TAO Price Prediction: Pullback to $520?
The Relative Strength Index (RSI), which tracks momentum, shows that TAO is currently overbought, sitting above 70.00 on the daily chart. Based on this, there is a potential for a short-term price decline. Using the Fibonacci retracement indicator, TAO might drop to $520.65, with further support around $445.63 if the selling pressure continues.
However, if demand for TAO increases significantly, the altcoin could defy this expectation and rally toward $700, maintaining its strong performance into October.
