- Bittensor struggles below $354, with $216 as key support and $400 as resistance.
- Volatility increases, signaling sharp price swings as traders watch for the next move.
- Weak buying pressure persists, making further declines likely unless demand strengthens.
Bittensor TAO bulls lost ground over the past month, allowing sellers to take control. The price fell below $354 but quickly rebounded 14% from recent lows. Despite this bounce, strong selling pressure continues. Many traders expect a deeper drop before any meaningful recovery. The $216 support level could play a crucial role in determining the next move. Meanwhile, resistance near $400 may trigger another wave of selling. Rising volatility adds more uncertainty to the outlook.
Bears Dominate as Volatility Surges
Price swings have grown more extreme since November. The Bollinger Bands show widening gaps, confirming increased market turbulence. The Average True Range (ATR) also signals heightened volatility, reflecting a surge in trading activity. An uptrend formed in November but failed to hold. Bears gained control, forcing TAO into a downtrend. The $434 support level collapsed in January, leaving $354 and $216 as the next major zones.
A brief rally above $354 failed to build momentum. Weak demand suggests another decline may follow. A sharp bounce often looks promising, but traders remain cautious. Without strong buying pressure, a rally could fade quickly. Many investors wait for confirmation before making moves. If sellers stay aggressive, a drop below $216 remains a possibility.
Will $216 Hold or Break?
A cluster of short liquidations has built up between $380 and $400. This zone aligns with the recent dead cat bounce, making rejection likely. Traders anticipate strong resistance near $400, creating potential short-selling opportunities.
Low buying pressure fuels bearish sentiment. A decisive move above $400 could shift momentum in favor of the bulls. Without sustained demand, TAO may continue sliding toward $216. Many traders remain on the sidelines, waiting for clearer signals.
Bulls need stronger momentum to shift market direction. A breakout above resistance could challenge the current bearish outlook. If sellers continue to dominate, further losses may follow. The next few days will determine whether TAO stabilizes or faces another sharp decline.