Bittensor [TAO] has garnered considerable attention as one of the foremost AI cryptocurrencies poised for sustained growth.
Despite a 10% decline in the past week, the coin has recorded a 20% surge this month, signaling a positive long-term outlook.
Recently, TAO broke out of an inverted head and shoulders pattern, surpassing the $600 mark, before entering a phase of consolidation.
Potential Bounce Triggered by Shorts Exiting
Several traders misinterpreted this as the conclusion of the bullish trend, despite no definitive structural breach on extended timeframes.
This misconception prompted a significant influx of short positions, anticipating further price drops. However, TAO’s value surged following this pattern, ensnaring these short sellers.
The price has now retraced to around their break-even point, a level often regarded as a psychological barrier prompting trapped traders to exit. This scenario could instigate a potential rebound if more shorts close their positions.
Currently, TAO is trading near $560, slightly below this psychological threshold. A further descent toward the $500 region could trigger a recovery towards $600 and beyond, pending an improvement in market conditions.
Following a recent adjustment, TAO seems to be in a phase of vertical accumulation, hinting at a potential bounce on the 45-minute timeframe. The dip to the $500 vicinity is viewed as a short-term buying opportunity.
A robust bullish convergence on the 4-hour chart indicates a probable price surge, with a target of at least $800 by 2025.
Nonetheless, traders are exercising caution as the MACD indicator reveals some vulnerabilities. Should TAO lose support, prices might briefly dip below $500 once more.
TAO Among Leading AI Ventures
Bittensor’s long-term prospects remain optimistic, but traders must monitor crucial levels for potential profits.
Despite the recent pullback, TAO retains its position as one of the premier projects in the AI sphere, further affirming its bullish trajectory.
The coin is ranked among the top 5 AI and Big Data initiatives in terms of development progress, standing alongside key players like Near Protocol [NEAR], Oasis [ROSE], and The Graph [GRT].
Inclusion in this elite list underscores Bittensor’s robust market position, positioning it favorably for a rebound from the $500 mark.
Traders should stay vigilant regarding significant price levels and market dynamics as Bittensor is anticipated to witness additional growth in the approaching months.