Bittensor: Will TAO surge to $250 or continue its downtrend?

Selling Pressure Shows No Signs of Weakening

The crypto market has shown no mercy to Bittensor in recent days. The token has recorded a brutal drop, losing more than 5% in 24 hours to trade around $178.20. This corrective movement is far from insignificant: it comes with a significant increase in trading volume, which jumped 15% to reach $117.50 million.

In technical analysis, a price decline coupled with increased volume often signals a strong bearish trend. Sellers clearly have the upper hand and are actively participating in the decline, leaving little respite for buyers. The tipping point was the loss of the $207 level on January 31st, a zone that TAO attempted to reclaim twice, without success.

Technical Analysis: Why $154 is the Next Target

TAO’s chart structure is concerning for short-term holders. The recent rejection occurred precisely at the Fibonacci 0.618 retracement level, a classic zone where corrective rallies often exhaust themselves. TAO was particularly rejected from the bottom of its previous multi-year range at $218. This means the previous support is transforming into major resistance, confirming the bearish trend.

Momentum indicators support this pessimistic scenario. The ADX (Average Directional Index), which measures trend strength, displays a value of 33.62 (well above the 25 threshold), signaling that the current bearish momentum is very powerful.

The 4-hour order block around $154 is the next target if TAO loses $173 and prints a new lower low on LTF.

If this drop is merely a correction, we could see TAO attempt to reach $250 in the coming weeks, according to Elliott waves. But $144 must absolutely hold to validate this scenario. Otherwise, TAO will return toward lower levels, between $90 and $50.

Can the Bulls Reverse the Trend?

Despite this grim picture, all hope is not lost, but the task ahead looks challenging for buyers. To invalidate this bearish thesis, TAO must imperatively achieve a breakout above the $207 resistance and transform this level into support. Such a move could reignite buyer interest and cancel the current downward structure.

However, as long as the price moves below this critical threshold, the scenario of a slide toward $144 remains most likely. Traders will closely monitor the price reaction around $154, the last stronghold before sellers’ final target.

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