Bittensor (TAO) continued to trade above the psychological $300 level. While market leaders Bitcoin (BTC) and Ethereum (ETH) faced heavy selling pressure over the past week and were forced to post losses, TAO continued to advance.
$300 therefore constituted an important support level that swing traders should monitor. Is the sustained uptrend another buying opportunity for TAO traders, or should they take profits and then expect a deep retracement?
Bullish TAO swing structure confirms trend direction
The move above $302.4 last week represents a bullish structural change for TAO on the 3-day chart. At the same time, OBV was reaching new local highs and psychological resistance to round numbers had been overcome.
These developments have been remarkable, especially as Bitcoin and many altcoins have been forced to fall or trade sideways. The demand for decentralized AI infrastructure likely explains the relative strength of the AI token.
A pullback towards $300 would be a buying opportunity for Bittensor traders and investors. Their next goal would be $450 to $500.
Why Traders Should Buy Now
The 4-hour chart was quite encouraging. During this period, the price structure was firmly bullish. Technical indicators also supported the bullish momentum and reflected consistent buying pressure on the altcoin.
Fibonacci retracement levels (cyan) showed that a retracement was in progress. The $286-$305 pocket would be the sweet spot to buy, but it’s unclear if we’ll get that drop.
Traders can look to buy anywhere in the $286 to $319 area as many traders and analysts also view the 50% retracement as key support in an uptrend. In both cases, the $405 and $449 levels would be the next targets.
A decline below the $261.1 mark will modify the H4 structure in a bearish manner and invalidate the bullish setup presented above.
Final summary
- Bittensor continued to trade above the $300 level despite the crypto market correcting over the past two days.
- This show of relative strength could see another uptrend next week, with the next targets being $409 and $450.
