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- TAO is consolidating near a critical $214 support level.
- Bullish divergences suggest selling pressure may be fading.
- Failure to hold support could send TAO toward $167.
Bittensor (TAO) is entering a decisive phase as price action tightens around a key support zone, leaving traders closely watching for signs of either stabilization or renewed downside. After a sharp correction from recent highs, the token is now consolidating, with early technical signals hinting at a potential short-term rebound — but only if critical levels hold.
At the time of writing, TAO is trading near $233, showing little change over the past 24 hours. Daily trading volume stands at roughly $165 million, while market capitalization is around $2.48 billion, reflecting subdued but steady participation as the market waits for direction.
TAO Slips Below $260, Focus Shifts to $214 Support
TAO recently lost the $260 support zone, triggering a strong pullback. That move has shifted attention toward the $214 level, which has emerged as a major technical floor.
Market observers note that price action around this zone has shown signs of stabilization. As long as TAO remains above $214, the structure favors a relief bounce rather than a continuation of the downtrend. A successful defense could open the door for a recovery attempt toward the former $260 support, now acting as resistance.
Bullish Divergences Suggest Momentum Shift
Technical indicators are beginning to flash early improvement. Bullish divergence has appeared across multiple timeframes — including the 1-hour, 4-hour, and daily charts — a pattern often associated with weakening selling pressure.
This setup does not guarantee a reversal, but it does suggest bears may be losing control. If buyers step in with conviction, TAO could attempt a gradual move higher, starting with a push toward the $242 area, followed by a retest of $260 if momentum strengthens.
Downside Risks Still in Play
Despite improving signals, downside risk remains. A decisive breakdown below $214 would invalidate the near-term recovery scenario and likely expose TAO to a deeper slide. In that case, the next major support sits near $167, a level that previously attracted demand.
For now, the market is in a waiting game. Traders are watching to see whether TAO can build a base above support or if sellers regain control.
Also Read: Grayscale Launches AI Crypto Fund Featuring TAO, NEAR, and RENDER
Bittensor is at a technical crossroads. Bullish divergences and slowing downside momentum point to a possible short-term bounce, but everything hinges on the defense of the $214 support zone. A hold could set up a recovery toward $242 and $260, while a breakdown would shift focus sharply lower. Until a clear move emerges, caution and close monitoring remain essential.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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