Bittensor TAO is optimistic despite AI crypto wave, traders are alarming

Despite the rise of AI crypto token Bittensor (TAO), the fourth-largest AI coin by market cap is struggling to recover. TAO’s performance on a weekly chart is neutral, but it plunged to 35.2% in a month.

TAO’s early May performance was bullish with a 48% increase to resistance at $487 in just 6 days. But the bulls couldn’t hold out for long and the price fell to $391 at the time of writing.

The price recovered, breaking all major support zones with heavy selling pressure and now forming new support levels at $381.29 and $372. Also trades below 50 days and 200 SMA.

The RSI reading below the 50 midline at 37 shows increased selling pressure.

However, the TAO has now formed a sideways pattern, indicating a physical neutrality zone. Bulls are now urgently calling for a possible breakout from the $382-$402 zone. Any direction above or below will continue the rally in the same direction.

Trade Setup: Enter $382-$402 excluding the $382 stop loss breakout.
Trend: Neutral but bullish in the long term.

Bittensor (TAO) price prediction

The overall current technical indicator shows neutral momentum above support. Currently on a breakout with a descending channel followed by a sideways pattern.

Trading below the 50-day and 200-day SMA, the price has reached a death cross moment, the price is motivated to push lower from here and stay on the new support.

Traders should wait for selling pressure to subside and look for a price near $372 to enter positions.