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Trapped in a symmetrical triangle pattern during consolidation, will a breakout above $340 for Bittensor (TAO) lead to a bull run toward $475?
AI tokens are trending as the broader market bounces back with a surge in rate-cut speculations. Amid a fresh recovery run of AI crypto tokens, Bittensor prepares a breakout run in the daily chart.
Will this breakout run in Bittensor lead to a new swing high, surpassing the $400 mark?
Bittensor Trapped in a Triangle
With a long-coming downtrend in the daily chart, the Bittensor token witnesses a massive correction. It fell from a peak closing price of $731 earlier this year to a yearly low of $165 on August 5, reflecting a substantial 77% decline during this bear market.
However, the Bittensor token has stabilized around the $219 mark, as underlying demand keeps prices above $200. Currently, the sideways trend above the $200 support is creating a symmetrical triangle pattern that holds the momentum trapped.
Currently, the token is showing signs of a double-bottom reversal from the $219 level, potentially signaling the start of a new bullish cycle aimed at challenging the overhead trendline, which has already resisted four breakout attempts.
Despite these efforts, the resistance trendline remains intact, continuing to confine the price action within the triangle. As of now, the TAO token is trading at $322, following a bullish engulfing candle from last night that resulted in a 12.37% surge. Today’s intraday candle has formed a Doji, indicating indecision near the overhead resistance.
Will Bittensor Price Surpass $400?
As the Bittensor token’s sideways trend continues, the upper and lower Bollinger Bands are converging, signaling that the altcoin may be approaching a breaking point.
The MACD indicator shows a bullish alignment, with the MACD and signal lines supporting each other, accompanied by an increase in histograms.
According to Fibonacci levels, the overhead trendline coincides with the 23.60% retracement at $340. A bullish breakout could target the 38.20% and 50% levels at $415 and $475, respectively.
On the downside, the 20-day EMA of the Bollinger Bands at $279 and the $219 support level are key areas of demand.