The price of Bittensor (TAO) has increased by 10% in the past 24 hours, solidifying its position as the largest artificial intelligence coin by market capitalization at $4.2 billion. The Ichimoku Cloud, RSI, and EMA indicators all indicate a strong upward trend.
The RSI index at 65 shows there is still room for further increases before entering the overbought territory, while the EMA setup supports the potential rise to $625.
TAO Ichimoku Cloud shows a strong upward trend
The Ichimoku Cloud chart for TAO shows an upward trend. The price is trading above the cloud (Senkou Span A and B), indicating upward momentum. Tenkan-Sen (the blue line) and Kijun-Sen (the orange line) are also positioned below the price level, supporting bullish sentiment.
The cloud itself has turned green, reinforcing medium-term support, while the upward slope indicates continued strength in the upward trend.
TAO Ichimoku Cloud. Source: TradingView
However, the price is approaching key resistance levels, and the narrowing gap between Tenkan-Sen and Kijun-Sen suggests the upward momentum may slow down. If TAO fails to maintain its position above Tenkan-Sen, a pullback towards the cloud may occur.
Conversely, a breakout above the current level will confirm the continuation of the upward trend, with the green cloud acting as a cushion for any potential pullbacks.
Bittensor is not overbought
Bittensor's RSI has risen to 65 from 49 in the past two days, reflecting strong momentum as the price increases. RSI, or Relative Strength Index, measures the speed and change of price movements on a scale of 0 to 100.
Values above 70 indicate overbought conditions, suggesting a potential pullback, while values below 30 signal oversold conditions, typically leading to a rebound. The current RSI suggests that while Bittensor is near overbought territory, there is still room for further increases before a correction.
TAO RSI. Source: TradingView
Historically, the price of TAO has continued to rise until its RSI reached 72 or 75, indicating that the current upward trend may have more room to run. If the RSI continues to rise, TAO may extend its upward momentum in the short term.
TAO price prediction: Back to $600 soon?
The EMA lines for TAO are currently very bullish, with short-term lines positioned above long-term lines and the price trading above all of them. This setup indicates strong upward momentum, supported by consistent buying pressure.
If this bullish sentiment continues, the price of TAO could rise another 8% to test resistance around $625, reinforcing the upward trend and TAO's dominance as the largest artificial intelligence coin in the market.
TAO price analysis. Source: TradingView
However, if the current upward trend loses strength, the price of TAO may face a retest of key support levels at $510 and $487. If these supports fail, the price could drop to $449, marking a significant 22% correction.