Is Bittensor (TAO) Done Pumping? What RSI and TAO Price Action Are Telling Us

The TAO price dipped today 3%, but it's finishing April with 70% pump. It was trading around $230 when the month started and the price is now at $367.

The TAO price today, April 27, dipped 3% despite scoring a 70% in April.

Technical crypto analyst ‘Patel’ updated his TAO price outlook.

Bittensor Chart Analysis Shows Bearish Signals

When looking at Patel’s TAO/USDT 3-hour chart from KuCoin, we can see that the price has been moving in a clear uptrend channel since early April, with price action contained between parallel ascending boundaries.

Recently though, TAO hit the upper boundary of this channel and got rejected, sending the price downward.

A concerning signal appears on the RSI indicator, where we can see lower highs forming while the price chart shows higher highs. This classic bearish divergence typically signals short-term weakness or a potential local top.

Patel’s short entry at $385 proved timely, as the price briefly spiked to $386 before reversing course. The pullback has reached about 6.25% from that point, confirming strong local resistance at this level.

The rejection was further reinforced by a small liquidity imbalance zone, which traders refer to as a Fair Value Gap (FVG). The price reacted strongly from this area, adding to the bearish signals.

What’s Next for TAO?

Patel projects that the TAO price might see some choppy recovery before another move down toward the mid-channel, followed by a potential bounce continuation. The bearish setup remains valid as long as the price stays below $390.

For traders already in short positions, Patel recommends taking partial profits and adjusting stop-losses from $410 down to $400 to manage risk better. The advice is to let the setup play out while respecting the current structure.

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Patel highlighted two main scenarios for the traders:

For those looking at potential short opportunities, a bounce back to the $380-385 zone that fails to reclaim $390 could offer a re-entry point. Entry around $382-385 with a stop-loss just above $390 and targets at $350 and $335-340 would be the play. Traders should look for another lower high on RSI or rejection wicks on lower timeframes for confirmation.

Alternatively, if TAO closes this month above $390 with strong volume, then the bearish outlook would be invalidated. This could signal a bullish shift, with a potential long opportunity on a successful retest of $390. In this scenario, entries around $390-393 with a stop-loss below $385 and targets at $415-420 would align with an extended channel top.

The coming days will reveal which scenario plays out as TAO continues to be one of the more volatile assets in the current market cycle.

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