Date: Wed, Nov 27, 2024, 02:47 AM GMT
The cryptocurrency market today witnessed a sharp reversal after yesterday’s correction, with Bitcoin (BTC) bouncing back near $95,000 from a low of $91,000. This recovery has sparked bullish momentum across altcoins, and AI token Bittensor (TAO) has emerged as a key gainer, rallying by over 10%. TAO is now trading at $584, boasting a market cap of $4.31 billion.
Source: Coinmarketcap
Eyeing A Key Breakout
Bittensor (TAO) has been building strength after successfully breaking out of a descending channel pattern near the $538 level. This breakout suggests a potential trend reversal and has brought the token to the upper boundary of a symmetrical triangle pattern—a crucial inflection point.
1.Bullish Scenario: If TAO breaks out above the upper trendline of the triangle pattern, it could initiate a fresh rally, targeting the $621 resistance zone. A successful breach of this level could push the price toward the next major resistance at $678, marking a substantial upside.
2.Bearish Scenario: In case TAO fails to confirm the breakout, immediate support lies at $537, which previously acted as a significant level during its descent.
The RSI (Relative Strength Index) currently hovers near 67.27, indicating increasing bullish momentum while staying just below overbought territory. This further supports the possibility of an imminent breakout.
What’s Ahead?
The recent strong performances by major AI-tokens such as RENDER, NEAR, and GRT, suggests a favorable environment for TAO to continue its rally. If Bittensor breaks out of its symmetrical triangle pattern, it is well-positioned to join the ongoing surge in AI token prices.
Investors and traders should keep a close watch on the $621 resistance level, as a confirmed breakout here could pave the way for substantial upside movements.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.