The flagship token of an AI crypto project, Bittensor, TAO, has recently broken into an important accumulation area, causing a new spike in interest in the token by technical traders. At the moment, TAO costs 327.59 USD, but it has decreased by 2.64% within 24 hours, as the rest of the market has cooled.
However, its price action currently rests at a structural support area, which usually leads to reversals within the AI crypto industry.
Daily Chart Reveals Falling Wedge Reversal and Uptrend Prospects
Based on TradingView figures, TAO is on the verge of breaking out of a falling wedge, which is a bullish reversal pattern that is typical during AI cycles in the crypto market. Having reached a low of about $163.7, the asset reversed to climb towards the price of about $480 before going into another pullback period, but with a controlled movement.
The tendency of the latest decline, which is described by a minor descending channel, returned TAO to a critical support range of $300 to $320. This is the same level as the wedge breakout retest, a major confirmation level of numerous AI crypto traders evaluating the alternative of long entries.
Price history indicates that, in case this demand area holds, TAO might retrace up to the resistance trades in the range of $357, and then it may approach the resistance of $496.6.
The ultimate goal is similar to the one aforementioned due to reckoning with bullish movement in the market, continuity of the AI crypto footprint. When coming closer to the chart and zooming in to 4 hours, we can observe that TAO is moving within a close range falling corridor.
Price action has recorded a slight recovery as it touched the lower boundary of the channel, with the price being at around $328. Another major resistance zone is at around 430-450, which remains as the short-term resistance. To achieve a further uptrend, TAO has to surpass the mark at $360, as it can serve as a trigger to a new impulse wave in AI crypto markets.
Under the price chart, the indicator of Volume Delta delta demonstrates the recent upsurge of buy-side interest, while Awesome Oscillator (AO) represents zeroing in on the past time range, which may present signs of diminishing bearish pressure. Both pointers support the assertion of a confirmation period prior to a directionality breakout.
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AI Crypto Sector Metrics Add Context to TAO’s Current Valuation
The value of TAO is around 2.91 billion in terms of market capitalization, and the 24-hour trading volume is 176.93 million.
The token has high active liquidity as seen from its 6.06% volume-to-market cap ratio, which demonstrates active operations against its price.
The fully diluted valuation (FDV) of TAO is 6.87B, whereas the unlocked market cap is a bit more than the realized one, namely 3.3B.
In addition to that, the profile score of TAO is quite high and is powered by its application to the material support of the decentralized machine learning networks, contributing to the fact that TAO is one of the key AI crypto-assets, along with the rest of the potentially innovative sub-sector.
In case of bulls’ entry to AI crypto story, one could watch such targets of resistance as $357, $440, and ultimately $748.3. However, a failure beneath $300 may annul this bullish form, and drive TAO back to its prior local low of $250.
At present, the existing support level is a discounting chance in the general AI crypto cycle, especially for spectators to the pattern setups and volume dynamics.
