Bittensor (TAO) continued its exceptional performance on Thursday and Friday, March 19 and 20. Over these two days, it registered a 28% rise, from the low of $242.7 to the high of $310.6.
The AI sector performed exceptionally well over the past week. However, the sector failed to maintain its upward momentum this week. At the same time, TAO token prices challenged the one-day high of $302.4, reached in January.
The bulls failed to overcome this resistance, but their struggle to push prices higher on Thursday and Friday showed intent. This also marked a bullish continuation on a shorter time frame.
Conviction among long-term Bitcoin (BTC) holders was also increasing as the leading crypto held on to the psychological $70,000 level. This could help TAO buyers in the short term. Will this also overcome the long-term bearish structure?
Pitched battle at the top of the TAO in January
The relative strength of the AI sector has slowed. As the largest AI crypto asset, TAO’s momentum is impacting the industry. The altcoin reached a long-term resistance level at $302. The subsequent drop to $242 was quickly recovered.
At the time of writing, the RSI was in overbought territory and indicated an overextended market. Additionally, the price was unable to close a daily trading session above $302, signifying a change in swing structure.
Interestingly, the daily trading volume has increased over the past week. This represented an intense battle between the bulls and bears in the $300 zone. It is unclear who will be the winner, but Bitcoin’s next move will have a big influence on the outcome.
Short-term bullish structure weakened by volume divergence
On the 4-hour chart, the structure appears bullish. The break above $300.7 (white) represents a breakout of the bullish structure after the retracement at $242.7. At the time of writing, the price had found support at the moving averages and the RSI was also above the neutral level of 50.
And yet, OBV has bottomed out over the past few days, even as the price has risen. This bearish divergence indicates a lack of buying pressure as TAO attempted to break through the $300 resistance.
Traders should wait and watch Bitcoin’s movements over the weekend to understand where Bittensor token prices may move next. Neither buyers nor sellers currently have a clear advantage.
Final summary
- Bittensor challenged the psychological $300 level again after a brief retracement to $242.
- Traders should not rush into positions, and being patient for a day or two can provide more clarity.
