Bittensor is an open-source AI project that experienced explosive growth in 2023 and early 2024. However, in the last 2 months, TAO has been in a strong bearish trend. So will it end soon ? What are the indicators that might suggest a reversal soon ?

The Trend

$TAO, the token of Bittensor, has been in a clear bullish trend since its launch in early 2023, going from $40 to $800 at its all-time high. The narrative AI is clearly a factor in this.

However, a token can never go up indefinitely, there has to be a retracement. 

So right now, we are in a strong retracement but still in a long-term bullish momentum with higher highs and higher lows.

Key Zones And Indicators

If we only look at the price action, we can identify key resistance and support zones :

TAO is now back at its previous all-time high. The $800 level is a strong level of resistance, with the price failing to break it 4 times, even with the listing on Binance on the 11th of April. 

Now let’s take a look at the indicators :

Let’s start with the RSI, which is a momentum indicator that allows us to identify reversals that might happen.

We can see that there is a bullish divergence (RSI making higher highs while the price is making lower lows).

That shows the weakening of the bearish momentum. However, it’s not enough to confirm a reversal soon. 

Also, the RSI bounced back off a very important trendline historically, the last reversal also happened after touching the trendline. 

Another sign in favor of a reversal is the Ichimoku, which has a similar configuration to the last reversal at $200 :

Logarithmic scale

We can note that the price is at the Tenkan (red line). The Tenkan was also the zone of reversal earlier this year. 

This is a zone of confluence (ex ATH, Tenkan, RSI on the trendline), so it’s worth keeping an eye on.

And for amateurs of the Elliot waves theory, here’s my wave count :

Logarithmic scale

It is just my personal view according to the typical ratio of Elliot waves. Because, there are a lot of external factors to consider for a price target.

Conclusion 

$TAO is in a very interesting technical zone. There are multiple points that suggest a reversal. However, nothing is confirmed yet.

As always thank you for reading !

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Disclaimer : This is not a financial advice, you need to do your own research !