- TAO is likely to rise to $240 but will not go higher.
- CMF predicted that bulls would have an upper hand in the market now.
Bittensor [TAO] On the 6th April, the price fell to $167. Since then, it bounced nearly 30% to retest $216 — a key horizontal level in the past month.
The chart for the 1-day period Bittensor The downtrend was in effect since the last week of January. This was the time when $416, the swing low level from the prior week, was broken.
In the following weeks, $434 to 450 became a region of resistance. The change was most evident at the end February.
In the six-week period since the TAO price dropped from $470, to just $180. Recently, $216 was also turned from support into resistance.
In April, it was expected that the price would move up to $140-$150.
The CMF has surged significantly higher in the last week, despite the slight increase of the Bittensor 1 day OBV over the previous couple days.
It was +0.05 at the time of publication, which is a level some analysts consider to be indicative of significant capital inflows.
Although the CMF’s buying pressure was noticeable, both the structure of the market and the momentum remained bearish.
TAO traded below the 20-day moving averag (blue), and Bollinger Bands indicated that volatility was increasing. More losses are likely, as the price has gravitated towards the lower band.
What traders should do to position themselves
Source: Coinglass
In the heatmap of 1-month liquidity, liquidity was collected at both $220 and $240. These levels are the targets for the short term as these magnetic zones near the price were noticeable.
Source: Coinglass
The $220 heatmap was much more prominent when zoomed into the 1-week liquidity heatmap.
It is highly likely that TAO will move higher and sweep into the $220 region.
After this, it would then be feasible to expect a bearish reverse. TAO’s potential to climb up to $240 or a possible bearish reversal at $220 was harder to predict. Both scenarios should be considered by traders.
If the TAO price rises to $240 or higher, then traders need to be more careful, since a possible $280-$300 bounce is likely. In the short-term, traders should remain bearish until $240 becomes support.
Disclaimer: All information provided is the opinion and solely of the writer. The author does not provide any financial or investment advice.
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Source: ambcrypto.com
