Bittensor (TAO) has recorded strong gains over the past week, climbing 41.7% and reaching a current price of $454. That said, the daily increase of 17.2% has pushed the asset near technical thresholds that may indicate reduced momentum ahead.
Approaching Key Resistance Levels
The Relative Strength Index (RSI), often used to measure the strength of price movements, shows elevated values. RSI(14) has reached 65, and RSI(7) is at 69. While these levels do not confirm a reversal, they suggest that Bittensor is approaching what is typically considered overbought territory. This condition is frequently associated with slowing upward momentum, especially when combined with other technical signals.
The price is also nearing the upper boundary of its Bollinger Bands, with the upper band currently positioned at $462. This technical indicator confirms heightened volatility. A move beyond this threshold may lead to continued expansion, but prices repeatedly touching or hovering near the upper band are sometimes followed by short-term consolidation or a pullback.
Should the current trend reverse, one of the key areas to monitor is the 23.6% Fibonacci retracement level at $399. This level may act as support in the event of a correction. A sustained move above $399 would indicate continued strength, while a drop below it could suggest weakening short-term momentum.
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Summary
Overall, Bittensor remains in an upward trend, supported by recent price action and external catalysts. However, current RSI levels and proximity to the upper Bollinger Band suggest that the asset may be entering a zone typically associated with increased caution. The $399 Fibonacci level stands out as a reference point for any potential correction.
