Bittensor Faces 25% Drop: Is a Retest of $400 the Next Move?

Will a falling wedge pattern extend the correction phase in Bittensor (TAO) to the $400 mark this November?

With a market cap of $3.43 billion, Bittensor is the 33rd biggest crypto. TAO’s price trend is currently struggling to find bullish support as it breaks under the $500 psychological mark.

With a 15% price drop in the last 30 days, the AI token is witnessing an intense pullback. Will this downfall result in a retest of the $400 psychological mark? Let’s find out.

Bittensor Falls Under $474

In the daily chart, Bittensor’s price trend shows a declining phase. The TAO token is struggling in a falling wedge pattern and has dropped nearly 25% in the past 9 days.

The downfall started at $624 on November 12 and has now reached $463. The falling wedge pattern has also breached the 23.6% Fibonacci retracement level at $474.

Despite the broader market recovery, the increasing bearish influence reveals the lack of underlying demand for the AI token. This has resulted in a “death cross” between the 50-day and 200-day EMA lines.

The merging of the 100-day and 200-day EMAs suggests that the bearish trend could continue if the price remains under pressure. However, the TAO price is approaching the support trendline, which could trigger a positive cycle within the wedge pattern, increasing the chances for a bullish reversal and a breakout rally.

Will Bittensor Sustain Above $400?

In a bullish scenario, key resistance levels for Bittensor are at the 50% Fibonacci retracement level ($543) and the 78.6% Fibonacci level ($617). If the trendline support fails to hold, the next significant level to watch is the $413 support zone.

Should the price drop further, the $400 psychological level may provide strong support, potentially initiating a double-bottom reversal, which would favor bullish sentiment.

The 4-hour Relative Strength Index (RSI) is showing bullish divergence, supporting the case for a potential rebound. If this fails, the $400 mark remains a critical support level to monitor for signs of a trend reversal.