Bittensor (TAO) Gearing Up for Over 100% Rally as Price Hits 7-Month Support

Bittensor (TAO) token has reached a critical support level that could signal the beginning of a significant price movement.

Bittensor (TAO) token has reached a critical support level that could decide the next move for the coin.

After analyzing the weekly candlestick chart, we identified some key indicators suggesting TAO price might be preparing for its next bullish phase.

Key Takeaways

The TAO/USDT pair is testing a crucial support level at the ascending trendline.

This trendline has acted as a support multiple times since December 2022, and it’s also where the last Y wave of a WXYXZ pattern finds support.

One recent weekly candle closed with a lower wick, showing buyers are defending this zone.

If the next weekly candle makes a higher low, then we’d have confirmation of a potential trend reversal.

WXYXZ Pattern Suggests Next Upward Leg

As seen in the chart above, the TAO/USDT pair is testing the lower boundary of a long-term ascending trend channel. This trendline has acted as support three times previously, and it’s also where the last Y wave of a WXYXZ pattern finds support.

This trendline begins at the lows of December 2022 and has been pivotal in signaling the direction of TAO’s price trends. As highlighted, the price tends to pick up strong buying interest at this trendline, evidenced by the wicks extending down to $250.

Furthermore, the last Y wave of the WXYXZ pattern has completely absorbed the previous X wave, which is a common occurrence in these complex corrective patterns. Typically, when the Y wave manages to reach the support of an X wave, it signals that a new upward leg could be forming.

Next Key Levels For Bittensor

For traders keeping an eye on TAO, there are key resistance levels to consider. The $500-$600 range marks a mid-range resistance area where previous supply zones are located. A break above this zone could pave the way for a move toward the $800-$1000 zone, which is a logical take-profit target.

Conversely, if TAO breaks decisively below the support trendline, we might see a deeper correction toward the $250 zone, where the Y wave found support. However, as long as the price stays above the ascending trendline, the bullish scenario remains the most likely outcome.