Bittensor (TAO) has faced a sharp decline on Monday, February 23, after testing the $180 level, previously highlighted as a key support/resistance flip zone.
According to the crypto analyst Crypto Pulse, the price rejected cleanly at this threshold, triggering a sell-off that erased roughly 8%. Traders note that momentum failed to hold, confirming the importance of S/R flips in short-term market movements.
Source: Crypto Pulse X Post
Looking ahead, technical analysis suggests TAO may continue its downward trajectory toward the $160 area. This level could serve as the next major support, guiding traders’ decisions.
Market participants are closely monitoring price reactions, as further declines or consolidation will hinge on whether TAO can regain momentum or remain under pressure from sellers in this critical zone.
Also Read: Bittensor (TAO) Eyes Key Support Before $214 Resistance Break
Bittensor (TAO) Technicals Point to Downward Trend
According to TradingView, as of Monday, February 23, TAO shows a clear downtrend on the 4-hour timeframe. The current price (167.39) sits below the 20, 50, 100, and 200 EMAs and the Ichimoku cloud, signaling bearish momentum.
Candles form lower highs and lows, with the Tenkan-sen below the Kijun-sen. A recent attempt to test the cloud failed, confirming strong resistance.
Source: TradingView
The long-term support and resistance levels are based on EMA 100 (181.46) and EMA 200 (195.13), which are above the current price. The Chikou span is also below the price and cloud, indicating a bearish market.
The descending red cloud indicates that the downtrend is likely to continue unless the $178-$181 range near the EMA 50 and EMA 100 crossover is broken.
Momentum Indicators Reinforce Bearish Pressure
Looking at the momentum indicators, the Relative Strength Index (RSI) is at 36.33, which is still below the 50% neutral level and close enough to the 30% oversold level.
This shows weak momentum and could indicate a bearish phase in the market. However, the 14-period RSI moving average is at 42.13, which is still somewhat higher and might indicate that the bearish pressure is subsiding.
Source: TradingView
This bearish view is further supported by the MACD indicator, where the line is at -0.90273, above the signal line at -2.69772, and the histogram bars are still negative, showing the momentum is falling.
The separation between the lines is wider, showing a strong bearish trend, but the recent convergence indicates the momentum might find some stability soon.
Also Read: Bittensor TAO Climbs to $184, Eyes $220 Breakout Next Week