Bittensor rallies 6.5% in 24 hours- Is it time for TAO buyers to place bids?
TAO was alone among the top AI category tokens in its show of relative bullish strength in the crypto market.
A week ago, AMBCrypto had reported that Bittensor [TAO] has a bullish long-term bias, but it could see a price retracement as deep as $194.
In particular, the $233-$194 golden pocket, plotted using Fibonacci retracement levels, could be a bullish turning point.
TAO bulls had other ideas. Over the past week, the buyers defended the $240 support zone and gradually drove the altcoin’s price back above the psychological $250 level.
The AI token’s resurgence recently was a standout in its sector. Other leading tokens in the AI token category on CoinMarketCap exhibited lackluster performance over the past week.
The bullish TAO shift can see the rally continue
The local high of $267.4 from the 17th of April has been broken. As pointed out in an earlier report, the swing structure of TAO on the 1-day structure was bullish.
Therefore, as things stand, the token presented a buying opportunity. It is possible, but unlikely, that TAO would plunge lower and retrace below $233 once again.
The trading volume has been relatively low following the pullback from $340 to $235 in the first half of April. Since then, the OBV has seen a shallow bounce, but it needs heavy demand to reclaim those highs.
Meanwhile, the RSI has climbed back above neutral 50 to reinforce the momentum shift.
Traders’ call to action – Buy or wait?
TAO’s breakout past the $260 resistance zone (red) was a good start, but the $273-$281 was also a key obstacle for buyers to overcome. A rejection from this area and a retracement below $250 would flip the short-term bias bearishly once more.
Traders can look to buy Bittensor. Its structure was bullish across timeframes, and the $250 and $233 were the key support levels to watch for bullish invalidation.
To the north, $328 and $377 are the next price targets. Given the mixed sentiment around Bitcoin [BTC], it is unclear if market conditions will be steady enough to allow TAO to reach its 23.6% extension level at $433.
Final Summary
- The Bittensor relative strength was notable and could set up a bullish move in the coming days.
- It was the only token with a standout performance among the top AI sector altcoins.
