Bittensor (TAO) Price Analysis: Bearish Engulfing Pattern Hints a Deeper Correction as the Price Slips Below $300

The bullish spell cast by the scepter of bulls in Bittensor (TAO) by July 7th, 2024, has ended by July 26th. The wall at $358 and the coinciding 200-day EMA band stopped bullish acceleration by limiting the gains up to 75% only from the major $200 support.

The bullish momentum in Bittensor (TAO) observed earlier has ended. A wall was encountered at $358, which halted bullish acceleration and limited gains to 75% from the major support of $200. This pushed the price downwards by nearly 20%, approaching the critical support of $200.

The fall accelerated as it breached the $300 previous swing low and the coinciding 50-day EMA dynamic support band. Other indicators also showed a bearish crossover, with the RSI at 43.82.

Bittensor (TAO) spot volume inflow had increased 15.12% for the current trend at $56.428 Million, and the market cap has fallen 2% on intraday valued at $2.054 Billion. The short-term decline in the 44th largest crypto by market cap seems imminent.

The liquidity ratio was weak in TAO at 3%, which could be a point of concern. The low liquidity in assets often makes buying and selling difficult. On top of that, so far, 34.10% of the supply has floated in the market, precisely 7.1 Million TAOs out of the max supply of $21 Million.

Bittensor (TAO) Derivatives Insights Illustrations

Bittensor’s (TAO) open interest was at $48.41 Million. As per CoinGlass, it fell by 2.42% in the previous session. It signified a decrease in open contracts from the last day.

When writing, its derivatives and perpetual volume inflow increased 13.03% for the short-term downside trend, where the volume was $64.05 Million.

The long versus short ratio for 24 hours was 0.8636, which signified that longs were greater than shorts side liquidation. The higher long liquidation showed increased bear interest, signifying the possibility of further downward acceleration. The short liquidation amount was $198.64K versus $34.44K for the long liquidation.

Unwrapping TAO Daily Chart Insights

Bittensor (TAO) has given humongous returns to its investors, which exceed over 1600%, peaking at $755.01 (ATH) from October 2023 to March 2024. However, it encountered a supply zone and failed to harness further gains above $755.01.

It was followed by profit booking in TAO, which loosened more than 70% of its previously achieved gains.

After failing to surpass $755.01, the price entered a spree of lower lows, returning to the original demand level in the next 4 months by July 5th.

Thereon, the price rose briefly and breached the upper border of the falling wedge. But, the TAO price met the $358 level, which dusted it downwards, slipping the swing low of the previously built at $300.

The current scenario depicts a short-term decline and the failure of the falling wedge. Therefore, the bears could eye support levels of $260 and $240, respectively. On the contrary, if any sudden support spikes the price, the resistance could be at $330 and $358, respectively.