Bittensor native token TAO has been caught in a tightening price range, setting up for a significant move in either direction. The cryptocurrency has formed a descending channel pattern that suggests an imminent breakout.
The daily chart reveals TAO price has been steadily consolidating within a downward-sloping channel, creating lower highs and lower lows. This pattern often precedes major price movements, as the compression of volatility typically leads to a decisive break in either direction.
TAO Bullish Scenario Takes Shape
A breakthrough above the channel’s upper boundary could ignite a powerful rally for Bittensor price. Such a move would likely attract momentum traders and could drive TAO price up by approximately 50% from the breakout point.
The analysis identifies a key resistance level around $588, which could serve as the ultimate target for this bullish scenario.
Read Also: Polkadot Price Expected to Rally 100% in the Coming Days Based on This Outlook
Bittensor Potential Downside Risks
However, traders should remain cautious of a potential bearish outcome. If TAO fails to breach the upper trendline resistance, the price might reverse course and slide toward the channel’s bottom. This bearish scenario could result in a 30% decline from current levels.
The credibility of any breakout will largely depend on trading volume. A surge in volume accompanying a price breakout would provide stronger confirmation of the move’s sustainability. Conversely, a breakout attempt with weak volume might signal a false move and require additional caution from traders.
