Bittensor (TAO) Price Update
Bittensor (TAO) has struggled recently, unable to escape a descending wedge pattern, leading to significant losses. However, signs of recovery persist due to key indicators suggesting a rebound might be imminent.
Historical Patterns
The Relative Strength Index (RSI) is recovering from oversold territory for the first time in eight months. Historically, when TAO entered this zone, it bounced back by 60%. While a similar rally may not be expected, the potential for recovery exists. As the RSI rises, investor confidence may improve, leading to a moderate return to bullish territory.
Macro Momentum Signs
Bittensor’s broader momentum shows potential recovery signs. The Sharpe Ratio is currently negative, which historically indicates an upcoming price recovery. Past occurrences of similar levels have led to downtrend reversals, suggesting improved risk-adjusted returns for TAO.
Upcoming Price Movements
Recently, TAO suffered a 45% decline due to the descending wedge pattern but now trades at $264, having bounced off a lower trend line. If TAO can break above $298, a bullish rally targeting $351 could begin, confirming the pattern’s completion. Conversely, failure to surpass $265 might see prices drop to $229, invalidating the bullish outlook despite the wedge pattern remaining intact.
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