Bittensor (TAO), one of the leading AI coins in the market, is currently showing signs of consolidation. Market indicators point to indecision as neither buyers nor sellers take firm control.
TAO’s move appears to be range bound, lacking clear momentum to either break higher or fall significantly lower. The EMA lines suggest the possibility of a death cross, which could trigger a significant correction if the market continues to lose momentum.
TAO Ichimoku Cloud shows consolidation
The Ichimoku Cloud chart for TAO shows a mixed picture of current market conditions. The price is currently trading near the cloud, indicating indecision.
The cloud itself (Kumo) is mostly flat and has both green and red areas, indicating an overall neutral trend. The price recently attempted to break above the cloud but failed to gain significant upward momentum, indicating resistance.
The Tenkan-sen (conversion line) and Kijun-sen (baseline) intersect near the current price, indicating that the market is looking for direction. Leading span A and leading span B forming the cloud do not diverge sharply, indicating potential movement within the range.
If TAO, the largest AI coin in the market today, is able to decisively break above the cloud, it could indicate a bullish shift. Conversely, a fall below the cloud base would indicate a bearish trend. At the moment, the market appears to be fluctuating, with buyers and sellers roughly equal, resulting in sideways movement.
Bittensor RSI returned to 50
TAO’s RSI is currently at 50, up from 31 just a day ago. This rapid movement suggests renewed buying pressure, pushing market sentiment to neutral.
A move from oversold to midpoint like this often implies a move away from strong bearish sentiment, but not necessarily into bullish dominance.
The Relative Strength Index (RSI) measures momentum by showing whether an asset is overbought or oversold. An RSI of 50 means that market sentiment on TAO is currently balanced.
There is no strong buying or selling trend at this level, suggesting the price could consolidate until new catalysts provide momentum in either direction.
TAO Price Prediction: There will be no $700 level in the near future
The TAO price chart shows that price is currently in a consolidation phase, trading between key support and resistance levels. Resistance lies at $600 and $618, where previous attempts to break higher have failed, while support at $503 and $473 holds for now, providing protection against further declines.
The EMA lines also reflect this sideways movement, with short-term EMAs moving closer to long-term EMAs, indicating declining bullish momentum.
The short-term EMA lines are on the verge of crossing below the long-term EMA lines, which, if confirmed, could form a death cross. A death cross typically signals a bearish reversal, implying that downward pressure may intensify and cause a significant correction.
If TAO price is able to regain its uptrend, it could soon test the resistance at $600 and $618. This would mean a potential price increase of 12%. However, if the uptrend is not strong enough and the trend reverses, TAO could fall to $473, which would represent a 14% price correction.
