TAO is showing signs of a potential breakout as its price action suggests a shift in momentum. Top analyst World of Charts shared on X that the token is positioned for a recovery following a period of consolidation.
The tweet highlights that TAO’s price is “on the verge of another breakout in shorter timeframes,” while also noting a focus on longer-term price movements beyond January 2. With a significant breakout visible on the chart, traders are monitoring key levels for possible further upward movement.
What you'll learn 👉
Bittensor Technical Analysis: Breakout Signals a Potential Trend Reversal
TAO recently broke out of a descending channel that defined its price action through early December. The downward trend, characterized by consistently lower highs and lows, culminated in a period of consolidation near the $460-$480 range. The breakout above the upper trendline of the channel suggests a potential trend reversal, supported by a shorter-term wedge formation.
This wedge breakout indicates bullish momentum, aligning with the measured move target of $780, which reflects a potential 47% upside. Immediate support levels are identified near $460-$480, while the base of the channel at $400-$420 serves as a stronger safety net. Resistance is expected near $600-$650, a zone previously marked by price congestion.
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Analyzing Support and Resistance Levels
The chart analysis reveals critical levels that traders are watching closely. The immediate support zone, created by the lower part of the wedge, provides stability at $460-$480. This level is vital for sustaining the upward momentum initiated by the breakout.
On the upside, the $600-$650 range represents a key resistance area that may present challenges for further price growth. Should TAO’s price maintain its bullish trajectory, the measured move target near $780 remains a realistic objective. These levels, combined with the breakout pattern, create an optimistic technical setup for the token’s price trajectory.
Insights from World of Charts’ Tweet
The tweet by World of Charts emphasizes the potential for a strong recovery in TAO’s price, particularly after its breakout. While the analyst anticipates short-term momentum, their focus appears to be on the token’s longer-term performance. The mention of January 2 suggests a preference for monitoring the broader trend rather than short-term fluctuations.
This perspective aligns with the current technical indicators, which favor sustained growth if the breakout pattern continues to hold. With the wedge breakout and measured move target, traders remain optimistic about TAO’s price trajectory in the coming weeks.
Furthermore, the breakout in TAO’s price has attracted attention, particularly due to the well-defined descending channel and wedge formations visible on the chart. These technical patterns, coupled with the key support and resistance levels, create an environment ripe for potential growth. Traders and investors are now closely monitoring the token’s performance to gauge its ability to sustain the recovery trend.
As Bittensor (TAO) positions itself for a possible upward move, the coming days will be pivotal in determining whether the bullish momentum can translate into further gains.
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