Date: Fri, Nov 29, 2024, 09:53 AM GMT
The cryptocurrency market is experiencing strong upward momentum, with major altcoins benefiting from a decline in BTC dominance. Among the top-performing sectors is the AI-focused token category, with FET and RENDER surging following their recent breakouts. Joining this trend is Bittensor (TAO), which has rallied over 10% in the last 24 hours and is currently trading at $628.
Source: Coinmarketcap
Key Breakout:
The major driver of today’s rally for $TAO is its breakout from a symmetrical triangle pattern, breaking above the upper trendline at $587. This breakout also saw TAO surpass a critical resistance zone at $620, which has now turned into a support level.
TAO reached an intraday high of $640 and is now consolidating near $628, retesting the breakout zone. From this point, a potential reversal could push TAO toward its next resistance at $680, with an eye on its all-time high (ATH) of $767, which represents a 23% upside from the current price.
The Relative Strength Index (RSI) for TAO is currently at 73, indicating strong bullish momentum but approaching overbought conditions.
Is More Rally on the Horizon?
TAO’s breakout from the symmetrical triangle is significant, as the pattern has restricted its price movement for the past two months. With this breakout, the recent bullish momentum in other AI tokens suggests TAO may be poised for further gains. Additionally, the decline in BTC dominance is creating a favorable environment for altcoins like TAO to rise further.
Conclusion:
TAO’s technical breakout and the ongoing rally in the AI token market highlight the potential for continued upward movement. If the retest at $628 holds, TAO could aim for its next resistance levels, with the ATH of $767 in sight. Investors should keep an eye on the market sentiment and broader trends in BTC dominance for further confirmation.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.
