What you need to know:
- Bittensor (TAO) is struggling near the $201–$204 resistance range and is trading in a “no trade zone” due to short-term indecision.
- The weekly RSI is below 50 and the price remains below the major SMAs, confirming the ongoing downtrend.
- Support is at $182-$185, while resistance offers potential short positions; bearish MACD indicates that sellers remain dominant.
Bittensor (TAO) is trading under pressure on Thursday, February 5, as the token is in a ‘no trade zone’, implying that investors will experience difficulty trading the asset in the short term due to the current downtrend. TAO is experiencing difficulties in regaining its momentum in the crypto market.
At the time of writing, Bittensor (TAO) is trading at $191.07, according to data from CoinMarketCapwith a 24-hour trading volume of $227.65 million and a market capitalization of approximately $2.0 billion. The price has fallen 6.81% in the last 24 hours and is now down 19.57% for the week.
Bittensor (TAO) is facing trading range pressure
According to a February 5 technical analysis update by crypto analyst Cryptopulse, TAO does not currently have a high-probability trading setup. Cryptopuls pointed out that the price action on the 3-hour chart indicates a rectangular range, which often indicates indecision.
Based on the analysis, support is currently between $182 and $185, while resistance is currently between $201 and $204.
Since TAO is currently trading in the middle, Cryptopulse has therefore called this region a gray zone as the risk-reward ratio is unfavorable for trading long and short positions.
Cryptopulse also noted that a break below the support level could trigger a faster decline, and any progress towards the resistance level could potentially provide better opportunities for short selling unless volume is strong.
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TAO remains technically weak
Over the longer time frame, Bittensor still shows several signs of structural weakness. The Relative Strength Index (RSI) on the weekly chart is still close to 37.19 and below the 50 levels, indicating that bearish momentum is still prevalent.
Price action remains well below the major moving averages. The 20-week SMA is almost $302, the 50-week SMA is almost $326, and the 100-week SMA is almost $381. All of these moving averages are above the price, and this only confirms the downward trend.
The momentum indicators also support the negative picture. The MACD remains negative as the MACD line is near -29 and the signal line is at -41. The histogram is also in the red at -11, indicating that the strength of bearish momentum has not diminished.
Significantly, no bullish crossover has occurred, implying that the sellers are still in charge unless momentum begins to stabilize.
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