Bittensor (TAO) is at an interesting technical juncture with price action consolidating within a well-defined descending channel on the daily chart on Tuesday, March 3.
According to the crypto analyst Jonathan Carter, after weeks of controlled price action to the downside, TAO is currently testing upper trend line resistance, suggesting a breakout may soon occur if bullish price action continues to accelerate.
Jonathan Carter has indicated that if a breakout above the descending channel is confirmed, a strong rally for the price of TAO could be experienced.
It has also been indicated that descending channels are usually a precursor for a strong price reversal once resistance is broken, with support coming from the buying force of the price.
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TAO Could Rally to $480 if $166 Holds Strong
In a bullish continuation pattern, there are several targets that are being tracked if the pattern is to play out. These targets are identified as resistance levels, such as $222 and then $295, which is a mid-range resistance.
Further bullish continuation is expected to target $370, and if this is a prolonged expansion, then the target is expected to be around $480.
Source: Jonathan Carter’s X Post
Nevertheless, the process of risk management is vital in this structure. For instance, the bullish argument would be negated if TAO dips lower than the $166 level, which would mean that bearish pressures are dominant in the market. Confirmation and volume studies should be used to assess this breakout situation.
TAO Technical Outlook Points to a Consolidation Phase
According to TradingView, as of Tuesday, March 3, Bittensor (TAO) shows a phase of consolidation after reaching a peak in mid-February. Currently, the price is trading around $179, oscillating in a tight cluster of moving averages.
While the 20- and 50-period EMAs act as near-term friction points, the 200-period EMA at $189 acts as significant resistance. This suggests that the market is looking for direction while trending slightly lower.
Source: TradingView
The current state of volatility is suppressed, and this is demonstrated by the constricted Bollinger Bands. This indicates that a major breakout is on the horizon.
Support is holding tight at the $168 mark to keep the declines at bay. Until TAO is able to break through the $190 level decisively, this asset is in a neutral-to-bearish state.
Also Read: Bittensor (TAO) Price Falls To $168, Traders Watch $315 Upside Potential
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