TAO, the token of the Bittensor network, continues to demonstrate market activity following a breakout from a descending wedge. The current price is fluctuating in the Fibonacci support zone, indicating potential for further growth.
Breakout Structure and Technical Levels
TAO broke out from a descending broadening wedge on the 12-hour chart, triggering a fast upside continuation. Price reached a high near $256 before retracing into a support zone located between the 0.618 and 0.786 Fibonacci levels. This area shows signs of slowing bearish pressure, supported by candlestick structures indicating reduced selling aggression.
Price Dynamics and Cycle Stages on CoinMarketCap
CoinMarketCap data shows TAO traded below the baseline from May to November 2023 in a flat accumulation range. In December 2023, TAO surged above the baseline, reaching a peak above $600 before entering a multi-stage correction. By early 2025, TAO bottomed near $200 and initiated a modest recovery into the $230 zone.
Liquidity Analysis and Situational Overview
Liquidity analysis reveals that the current blue price zone overlaps with prior demand and price inefficiency. The price now hovers near the upper boundary, indicating deceleration in bearish momentum. This zone serves as a technical base, often attracting institutional re-entry during post-breakout retracements.
TAO exhibits an interesting technical pattern while situated in the Fibonacci support zone after the breakout. The future price movement remains uncertain, yet the current base could facilitate new growth.
