TAO Forms 3-Wave Move at 78.6% Retracement Level, Where Next?

3 mins mins

Key Insights:

TAO forms a 3-wave move at 78.6% retracement, signaling market uncertainty.
A bullish RSI crossover and higher low suggest potential for upward momentum.
The $320 resistance level is crucial for further upside potential in $TAO.

2fa5ecbe 052e 4188 a83f d1ca0455a550 1 — *TAO Forms 3-Wave Move at 78.6% Retracement Level, Where Next?*

The cryptocurrency Bittensor ($TAO) has recently shown an interesting reaction to the 78.6% retracement level, with a three-wave move to the upside. Despite the positive price action, traders are now questioning the next potential move for $TAO, as it is yet to regain key resistance levels.

Price Action at the 78.6% Retracement Level

Bittensor has recently shown a notable reaction at the 78.6% retracement level. The retracement level often serves as a critical point in technical analysis, especially for assets like $TAO. This level indicates a potential reversal in trend.

Based on Morecryptoonl, the coin has exhibited a brief three-wave move to the upside following its approach to this retracement point, which has sparked interest among traders.

A three-wave movement typically signals a correction or retracement in the market, rather than a full trend reversal. The analyst mentioned, “It’s important to note that the price movement so far has not shown sustained strength,”. If $TAO fails to break through further resistance, the market may experience a consolidation phase, or the price could potentially retrace once again.

Confirmation of a Higher Low and Positive Indicators

Despite some hesitation at the 78.6% level, recent data has shown positive signs for $TAO. The coin has managed to confirm a higher low, signaling an upward trend in the longer term. As of press time, $TAO is trading at $247.16, showing a 1.95% increase in the past 24 hours.

However, OCT Trades indicated that a bullish 3-day candle pattern has emerged, alongside a bullish RSI crossover, marking the first such event since September. OCT Trades added “This could be a sign that momentum is shifting in favor of bulls,”. Traders are now closely watching the next steps, with hopes that this trend will continue.

Key Resistance Levels and Market Outlook

Looking ahead, traders are focusing on the critical $320 resistance level. This level corresponds to the golden pocket of the previous rally that occurred between April and October. A move above this level would signal further upside potential for TAO.

Despite the recent positive signs, the price must sustain its momentum to confirm a more significant rally. If TAO manages to stay above the higher low formed at $200 and breaks through the $320 resistance, further upward movement is likely. However, failure to regain this level may result in a more cautious market outlook for the cryptocurrency.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.