Bittensor (TAO) Under Pressure: Is a Move Back to the Bullish Zone Still Possible?

• Bittensor has dropped 4%, reaching $223.
• TAO’s daily trading volume is up by 81%.

The fear sentiment in the market has pushed the majority of the assets into the red zone. Among the tokens, Bittensor (TAO) is losing momentum, registering a 4.05% drop. In the early hours, it traded at $235.86, and with the bears entering the TAO market, the price dropped to the $220.59 range. 

At the time of writing, Bittensor traded within the $223.01 zone, with the market cap found at $2.46 billion. Moreover, the daily trading volume of the asset has exploded by over 81.92%, reaching the $664.09 million mark, according to the CoinMarketCap data. 

Zooming in on the 4-hour price chart of Bittensor, there is an active downside momentum, slipping to the $212.38 support range. With a continuous bearish correction, a death cross might take place, and the bears could likely push the asset’s price even lower, below $201.02. 

On the other hand, assuming an uptrend emerges, the Bittensor price could climb to the immediate resistance level at around $234.37. If the bulls gain more strength, with the potent upside correction, a golden cross would emerge and drive the price to $245.73 or even higher. 

Will Bearish Momentum Drive Bittensor to New Lows?

Bittensor’s technical analysis reports that both the Moving Average Convergence Divergence (MACD) and signal lines are below the zero line. It indicates the bearish trend. The price action is trading below its longer-term average, and the sellers continue to control the broader direction of the market.

(Source: TradingView)

Furthermore, the Chaikin Money Flow (CMF) reading stationed at -0.14 suggests moderate selling pressure with a noticeable outflow of capital. The volume favours distribution rather than accumulation. The bearish sentiment of TAO is currently stronger, and selling activity continues to outweigh buying interest.

The daily Relative Strength Index (RSI) value is found at 34.68. Also, this points to weak bearish momentum, with Bittensor approaching its oversold territory. With the downside pressure present, though, the asset is getting closer to levels where a short-term bounce could emerge if buying interest returns.

(Source: TradingView)

Moreover, TAO’s Bull Bear Power (BBP) of -16.8 showcases strong bearish pressure in the market. The price is trading below its average, showing that sellers are firmly in control. It reflects sustained downside momentum with buyers needing to regain momentum before a recovery can take shape.

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