Despite the recent surge in the AI crypto market, Bittensor TAO, ranked as the 4th largest AI coin by market cap, is facing difficulties in making a comeback. The performance of TAO in the weekly chart remains neutral, but it has experienced a significant drop of 35.2% over the past month.

In early May, TAO's performance was positive, with a 48% increase reaching a resistance level of $487 within 6 days. However, this bullish trend was short-lived as the price dropped to $391 in recent times.

The price decline has broken through major support levels, attracting substantial selling pressure, and is currently establishing new support levels at $381.29 and $372. Additionally, TAO is trading below the 50-day and 200-day Simple Moving Averages (SMA).

The Relative Strength Index (RSI) now stands below the 50 midline level at 37, indicating a rise in selling pressure. Despite this, TAO has adopted a sideways pattern, suggesting a state of neutrality. It is crucial for bulls to push for a breakout above the range of $382 to $402. Any movement beyond this range will dictate the future direction of the rally.

Trade Setup: Consider entering the market between $382 and $402, with a stop loss below $382.
Trend: Currently neutral, but showing potential for long-term bullish movement.

Bittensor (TAO) Price Prediction

Based on current technical indicators, TAO is exhibiting a neutral momentum above key support levels. A breakout from a downward channel to a sideways pattern is underway.

With the price trading below both the 50-day and 200-day SMAs, a death cross scenario may lead to further downward pressure before finding new support. Traders are advised to monitor the price action around $372 for potential entry points once selling pressure subsides.