Bittensor (TAO) Price Prediction 2023-2024: Can TAO Hold Its Ground at Key Support?

Bittensor [TAO] has consistently underperformed across multiple timeframes. On a monthly scale, the token has suffered a 14.22% drop. In the press

output: Bittensor [TAO] suffered a palpable setback in the past month, enduring a 14.22% price decline.

This downturn aligns with AMBCrypto’s previous analysis, highlighting TAO’s vulnerability to a deeper slump amid broader market weakness.

At press time, TAO opened the daily session with a sharp 5.05% loss, continuing its downtrend.

The token faced a critical support level of $488.4, a zone that sparked significant price reversals in the past.

On two prior occasions, this level acted as a launchpad for rallies, with traders eyeing a third test of this support.

If TAO manages to rebound from this level, it could rally to $682.2. However, failure to hold this support might lead to further declines.

Initial downside targets are placed at $403.4, with a deeper drop to $355.8 possible if selling pressure worsens.

To forecast TAO’s next move, AMBcrypto analyzed additional metrics, highlighting key factors that could determine the asset’s trajectory.

Bearish sentiment engulfs TAO

Market sentiment around TAO appeared to be bearish, based on AMBCrypto’s analysis using Coinglass data.

In the past 24 hours, TAO’s Exchange NetFlow turned positive, indicating more tokens were being deposited into exchanges than being withdrawn.

A positive NetFlow usually signals potential sell-offs as traders prepare to offload their holdings. At the time of writing, over $3.90 million in TAO were being deposited, likely to be sold.

The market also saw significant long liquidations, with $295.62K in long positions being closed compared to just $9.59K in shorts.

This imbalance suggested that traders betting on a rally were being forced out of their positions as bearish pressure mounted.

Further analysis revealed a Long-to-Short ratio of 0.9084, indicating that more traders were betting on TAO’s decline than on its recovery. This trend highlighted the growing pessimism among market participants.

Technical indicators align with on-chain data

Technical indicators confirmed the bearish outlook for TAO, with tools like the Moving Average Convergence Divergence (MACD) and Bull Bear Power highlighting a strong presence of sellers in the market.

The MACD has formed a “death cross,” a bearish signal that occurs when the blue MACD line crosses below the orange signal line.

This pattern on the chart below usually precedes a decline in momentum, reinforcing the downtrend.

Additionally, the Bull Bear Power indicator further highlighted the presence of Bittensor bears.

The growing red momentum bars on the indicator revealed that sellers were currently in control, verstärkte das bärische Gefühl.

Based on these technical metrics, the overall market sentiment remained bearish, suggesting the likelihood of further declines for TAO.