- On April 17, Bittensor (TAO) witnessed a rally where it soared above $266, but quickly plunged below a major support level at around $255.
- The rally was witnessed after Bitcoin (BTC) soared above $78,000, which sparked a bullish momentum in the overall crypto market.
- Bittensor has been locked between a strong consolidation pattern between $240 and $260 for many weeks after earlier volatility linked to subnet news.
On April 17, Bittensor (TAO) price witnessed an upward momentum with a surge of 7% on a daily chart following a rally in the Bitcoin (BTC) price, but failed to hold its position and faced a quick correction on the daily chart.
On Friday, the overall crypto market sparked a bullish sentiment, which helped most altcoins to gain a spike. The main reason behind the rally in the crypto market is the major development in peace talks between the U.S. and Iran. Apart from this, recently, artificial intelligence-related tokens have also attracted the attention of investors due to their real utility.
At the time of writing, Bittensor (TAO) is trading at around $252.30 with a market capitalization of around $2.82 billion, according to CoinMarketCap. The daily trading volume also jumped by 37% in the last 24 hours and is currently revolving around $396.22 million.
Bittensor (TAO) Price Struggles to Break Consolidation Pattern
According to the current Bittensor TAO6.60% price chart, the surge in the cryptocurrency came after a bounce from a major Fibonacci support level. This bounce was also supported by a 41% surge in trading volume.
On Friday, Bitcoin (BTC) gained an upward momentum and rallied above $78,000. Amid this, Bittensor has also witnessed a small spike before returning to its pre-rally state.
Bittensor has been stuck between a strong consolidation pattern between $240 and $260 for many weeks after earlier volatility linked to subnet news. In the recent trading session, TAO managed to soar above the major resistance levels around $260 with high trading volume. This breakdown in the upper boundary has triggered a fresh buying interest from traders.
However, the cryptocurrency failed to hold this position and plunged quickly below the $255 support level. According to the experts, the cryptocurrency is currently gradually building momentum after the drop.
The current price chart is suggesting that the price attempts to reverse from the previous low zone, where it faced a sharp downfall. The token recently managed to reclaim two important moving averages, though it failed to hold position above a major resistance level at $260.
The latest price movement comes after a major downturn that hit the Bittensor market hard. Last time TAO crashed by around 27% and wiped out nearly $900 million from its market capitalization in just 12 hours. The crash also led to the liquidation of $9 million worth of TAO long positions. It means that traders who trade against higher prices were forced to sell their holdings at a loss.
Bittensor is coming off a clear downward trend and now attempts to reverse from the $235 zone. The price just reclaimed the 7-day moving average and the 30-day moving average, and this marks the first bullish signal according to chart trackers. However, the 200-day moving average sitting around $290 remains the real boss of the trend.
The price movement around the current zone will decide the next direction for the cryptocurrency. If the price rejects the current levels between $260 and $265, then it could go for a downward move back to $245. This rejection means that the attempted breakout is a fakeout. This happens when prices generally move above a major level only to fall back down and trap buyers who entered on the breakout signal.
Amid the bullish sentiment in the crypto market, many altcoins have witnessed an upward momentum, such as Ethereum, which rallied after Iran announced the reopening of the Strait of Hormuz.
Also Read: Chainlink Price Soars 6% After Bitcoin Breaks $77,000 Mark
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