It bounced back and closed above the $530 resistance on September 23, but the bulls failed to extend the recovery beyond $600.
A positive sign in favor of the bulls is that they did not allow the price to close below the solid support at $530. If the price continues higher and breaks above $600, it will signal the resumption of the uptrend. The TAO/USDT pair could march towards $640 and then towards $720.
Alternatively, if the price breaks below $530, the next support is at $489. The buyers are expected to aggressively defend this zone. The bears will be back in the game if they sink the pair below the 20-day EMA.
The bulls are fiercely defending the $489 to $535 zone, indicating buying on dips. If the price sustains above $563, the pair could retest the $600 level. This is an important resistance for the bears to protect because a break above it could start the next leg of the uptrend.
Conversely, if the price turns down and breaks below $489, it will suggest the start of a deeper correction. The pair could drop to $450 and then to $400. The deeper the drop, the longer it will take for the uptrend to resume.
