Bittensor (TAO) price has seen a strong rally over the past few days, but the momentum appears to be slowing after the latest rejection near the $300 level. This comes at a time when major cryptocurrencies like Bitcoin, Ethereum, and XRP are breaking out of their accumulation ranges, highlighting a relative weakness in TAO’s price action.
Despite a solid recovery from the $150 lows, TAO has once again failed to clear the $300 barrier—a level that is now acting as a strong resistance after multiple rejections. With bulls struggling to sustain momentum at this zone, the key question now is whether this marks the beginning of a deeper correction or just a temporary pause before another breakout attempt.
Why is the TAO Price Falling Weak at $300?
The rejection at $500 triggered a bearish phase, dragging TAO below the 200-day MA. Despite a near 100% rebound, the price is struggling to hold above this level, indicating weakening strength. With Bitcoin reclaiming $75,000, capital appears to be rotating back into majors after gains in TAO. In this context, holding above the 200-day MA is crucial to sustain the bullish structure and avoid a deeper pullback.
The daily RSI has reached the overbought zone, and its quiet obvious that it flips from the persisting bullish momentum. This has adversely impacted the TAO, which is trading around $277 from the local highs at $286. On the volume side, the OBV shows a gradual uptick, suggesting accumulation is still in play. This divergence between the price rejection and steady volume hints that selling pressure may not be aggressive but rather a pause after an extended rally.
As long as TAO holds above the $220–$230 support zone, the broader recovery structure remains intact. However, a failure to reclaim the $300 level in the near term could lead to a consolidation phase or a deeper pullback before any sustained breakout attempt.
Wrapping it Up
Overall, the market sentiments remain extremely bullish regardless of the interim hurdles. No doubt it is facing a crucial resistance just below $300; the area around $220 to $240 is acting as a strong base. Therefore, breaking either of these levels may push the Bittensor (TAO) price accordingly, and until then, the consolidation may prevail.