Bittensor (TAO ) is trading around $393.40 after dropping 6% over the past days, and that dip has caught the attention of traders looking for where the price might stabilize. A post from market analyst DD on X (formerly Twitter) laid out a possible turning point, if one specific condition plays out.
In his view, TAO price has formed a rounded top, a pattern that usually signals fading bullish momentum. The price is now heading toward a demand zone, and how it behaves there could set the stage for what happens next. If that level holds, a reversal might be on the table. If not, the downtrend could continue.
What you'll learn 👉
Rounded Top Formation Suggests Cooling Momentum For Bittensor Price
According to DD, TAO chart displays a rounded topping formation, a structure that typically follows a prolonged uptrend. This formation suggests slowing buyer interest and signals a possible transition to consolidation or a corrective phase.
The decline from the local highs has been described as aggressive. Rounded tops often result in lower highs and a gradual price fade, which is consistent with the current TAO price movement. This loss of momentum reflects a shift in market sentiment, prompting a closer look at potential support zones that could stabilize price action.
TAO Price Key Demand Zone Supported by Volume Profile
The analysis points to a clean demand zone aligned with the point of control (POC), where the highest volume in the range was previously traded. This area is situated around the mid-range of the broader trading structure and is considered a level of interest.
If Bittensor Price finds support here and prints a higher low, it may create the structural base needed for a move back toward the range highs. Failure to hold this level could expose the price to deeper drawdowns. For now, the demand zone remains a technical area where bulls could regain control.
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Moreover, DD also suggested that if Bittensor (TAO) establishes a local range within the current demand zone, it could offer favorable entries for long positions. Traders typically watch for range development after sharp price declines, looking for signs of accumulation.
A local base, paired with increased volume and failed breakdowns, may indicate that buyers are stepping in. This would raise the probability of a short-term recovery. However, if TAO continues to fall below this range, further downside is possible before any reversal is considered.
Technical Structure to Signal Potential Reversal For TAO
The ideal bullish setup, according to the analysis, would involve TAO price forming a higher low inside the demand area, followed by a higher high. This structure may serve as confirmation that the trend is beginning to shift.
Until such a setup is observed, traders are advised to remain cautious. The Bittensor chart continues to reflect a bearish short-term trend. Price action near the POC will likely determine the next direction for Bittensor in the coming sessions.
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