Bittensor TAO: Bearish Tides Ahead?
TAO token from Bittensor experiences difficulty in upholding its gains, having risen by 6.5% over the past seven days.
Bittensor's TAO token has been on a 6.5% surge over the past week, but its momentum seems to be slipping. With a market cap close to $4 billion, TAO corrected 6.6% in the last three days, causing concern among investors. Here's a breakdown of the current situation, along with some intriguing insights from the data mines.
TAO's Tumultuous Trend
The DMI (Directional Movement Index) chart shows a weakening trend as the ADX (Average Directional Index) plummeted from 47 to 23.16 over the last three days. The ADX, which measures a trend's strength, hovers just above the 20 mark, indicating a market that's losing steam. Meanwhile, TAO is the largest artificial intelligence coin in the market, outperforming industry giants like NEAR, ICP, and RENDER.
The +DI (Positive Directional Indicator) has taken a hit, sliding from 23.87 to 17.41, confirming a decline in bullish pressure. On the flip side, the -DI (Negative Directional Indicator) rose from 17.86 to 23.15, highlighting the growing influence of bears. This crossover—where the -DI surpasses the +DI—suggests that sellers are taking control, and the downtrend may further develop.
TAO's Market Rhythms
TAO's Relative Strength Index (RSI) is currently at 48.46. In a dramatic intraday dip yesterday, it plummeted from 53.82 to a low of 35.25 just a few hours ago. The RSI, a momentum indicator measuring recent price movements, indicates mild bearish bias. However, the recovery from the 35.25 low shows that buyers are showing up, albeit with weak momentum.
Support Levels: Friends or Foes?
Having tested key support levels of $417.6, Bittensor bounced back above $440, demonstrating some resilience. Despite this, the narrowing gap between its EMA lines indicates weakening momentum. A potential shift in trend could pose a threat to Bittensor's lead as the biggest AI coin in the market.
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Disclaimer
This analysis is for informational purposes only and should not be taken as financial advice. Ever-changing market conditions warrant thorough research and expert consultation before making any financial decisions. Make sure to familiarize yourself with BeInCrypto's revised Terms, Privacy Policy, and Disclaimers.
- Despite TAO's surge in market cap, the weakening trend and the crossover of -DI over +DI on the DMI chart suggest that sellers are taking control, raising concerns of a further downtrend.
- With TAO's RSI currently at 48.46, a dramatic intraday dip yesterday indicated mild bearish bias, but the recovery from the low of 35.25 shows that buyers are showing up, albeit with weak momentum.
- As Bittensor tested key support levels of $417.6 and bounced back above $440, the narrowing gap between its EMA lines indicates weakening momentum, suggesting a potential shift in trend that could pose a threat to Bittensor's lead as the biggest AI coin in the market.
- For those seeking a user-friendly platform for trading TAO and other digital assets, Uphold provides a one-stop solution with early access to new tokens, one-step trading, and multi-asset support.
- For those eager to learn more about the world of AI-focused cryptocurrencies, exploring platforms like TonTrader, dYdX, Arkham, BingX, and HTX could provide additional insights. However, it's important to note that this analysis is for informational purposes only and should not be taken as financial advice, as ever-changing market conditions necessitate thorough research and expert consultation before making any financial decisions.
