Bittensor (TAO) at Risk of ~40% Drop if Crucial Support Breaks; Aptos (APT) Gears Up for Rally

According to Rekt Capital's latest newsletter, Bittensor's TAO has been showing concerning price action that could lead to a downturn

Bittensor’s (TAO) price is in danger of dropping by 40% if it fails to keep a crucial support level, according to a recent crypto analysis from Rekt Capital.

The analysis, which was part of Rekt Capital’s latest newsletter, showed that TAO has been showing concerning price action that could lead to downturn if key support levels fail to hold.

For several weeks now, TAO has been trading within what appears to be a Weekly Ascending Triangle formation. However, it has repeatedly failed to break out from this pattern, facing harsh rejection from the top of the structure and subsequently dropping straight to the bottom.

And if the crypto price fails to maintain its Ascending Triangle and loses the critical $350 support level, then prices could drop into the identified lower range. This would complete the fractal pattern with a possible dip to $217, which represents a 38% decline from current levels.

“The implication of losing this support would be disastrous for TAO as it would likely continue lower to complete the lower fib range. This fib range coincides with the lower half of the Ascending Triangle, which would be a clean entry point for new traders in the future if the price does indeed drop to this lower range.”

As the analysis showed, TAO has managed to print Weekly Closes above the $350 support for five consecutive weeks. According to Rekt Capital, in order to maintain this price stability, TAO will need to avoid a Weekly Close below this crucial level in the coming days.

Aptos Could Be Ready For A Rebound

Despite the recent Bitcoin price action, which saw the cryptocurrency drop below the $21k level, APT continues to maintain its position above the Monthly Range Low of $5.45.

According to Rekt Capital’s analysis, continued stability above this level going into March would secure a Monthly Close above the Range Low, which would be essential for preserving the Macro Range structure.

“The implication of losing this Range Low would be catastrophic as it would likely continue lower to complete the lower fib range. This fib range coincides with the lower half of the Ascending Triangle, which would be a clean entry point for new traders in the future if the price does indeed drop to this lower range.”

Provided that this Range Low indeed continues to hold, then Rekt Capital points out that a future retest at a higher level would be necessary to enable trend continuation into the upper half of the Macro Range.

Specifically, APT needs to hold this Macro Range Low to enable a move to the $7.92 level over time. A Monthly Close above that level would create a post-breakout retest opportunity, turning this level into new support that could springboard prices towards the Downtrend line in the Macro Range.

“After a move to the upper half of the Macro Range, perhaps a move to the Fib .618 would be possible. This would also create a higher low after the lower lows at the beginning of the year.”

As Rekt Capital concluded, the first priority remains preserving the Monthly Range Low before looking at higher targets.