The Bittensor token (TAO) is showing tentative signs of escaping its prolonged downward trajectory, following a strong upward price movement. While this signals potential renewed strength, the altcoin must solidify a higher low at a critical technical convergence point before a significant rally, potentially reaching 200%, can be confidently projected.
For weeks, TAO navigated a consistent downtrend, marked by successively lower peaks and troughs. That bearish pattern faced its first significant challenge recently when an impulsive move pushed the price above a key lower high. Now, TAO is testing a zone pivotal for bullish continuation, contingent on buyers establishing support and confirming a higher low.
The current price area holds considerable technical weight. It represents a confluence where the crucial 0.618 Fibonacci retracement level intersects with the Volume Weighted Average Price (VWAP) calculated from the start of the recent downtrend, and the Point of Control (POC) indicating high trading activity. This convergence marks a vital pivot zone.
From a technical standpoint, if buyers successfully defend this zone and TAO carves out a definitive higher low, the probability of a strong Wave 3 bullish impulse increases substantially. Such a move would target the prior range highs, translating to a potential 200% appreciation from the current levels. Confirmation at such confluence zones is crucial for validating potential trend shifts in the dynamic crypto market.
Looking at the broader picture, TAO continues to trade within a large horizontal range. The recent rebound from the lower boundary of this range indicates clear buyer interest and demand emerging at these depressed levels.
Should TAO consolidate above this technical confluence, establish a clear bullish market structure, and gain backing from strong volume profile data, the likelihood of a move towards the top of the trading range grows significantly.
Bittensor (TAO) currently sits at a critical juncture. Confirmation of a higher low within this confluence zone would drastically improve the bullish outlook. A successful retest could ignite a powerful continuation, presenting one of the more defined potential rally setups in the current market landscape.