Analysts discuss the growth prospects for TAO against the backdrop of recent chart movements and external factors such as potential Bitcoin growth.
Early Signs of TAO Price Growth
Jeff Sekinger asserts that TAO has just initiated a significant upward movement. Drawing from historical data, he notes that each time the Relative Strength Index (RSI) reaches 70 on the three-day chart, the price tends to surge dramatically. For instance, after the first RSI hit 70, TAO experienced a remarkable 382% increase, and the second instance saw a 115% rise.
Current Situation and Key Levels
Analyst Donnie points out that TAO is currently priced at approximately $600, with neither a Coinbase listing nor Bitcoin having entered its price discovery phase. In this context, the price could 'fill the wick,' referencing the prior spike where TAO soared above $1,000. Currently, TAO is valued at around $598, reflecting a 6.72% increase. Earlier in the year, the price experienced a significant spike above $1,000, but quickly retraced, leading to a period of consolidation that saw the price range between $400 and $500 for several months. Recently, however, it has broken out from this range and is trending upward.
Forecasts and Prospects
The next major resistance appears around the $700 mark, which is also the target for short-term upward movement. The highest wick from earlier spikes reaches up to about $1,200, indicating a significant resistance point. The chart further suggests that TAO may consolidate around the $500-$600 region before making another push towards $700 and beyond. Donnie’s commentary recognized the impact of external catalysts, such as a Coinbase listing and Bitcoin’s performance. He implies that should Bitcoin begin to rally into new highs, it could spur additional upward momentum for TAO.
Analysts agree that TAO has the potential for further growth under certain conditions such as improved market conditions and external catalysts.
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