TAO, the native token of the Bittensor network, is trading near $215 after falling more than 55% from its $500 peak. The token is now retesting its crucial $175-$215 support zone for a second time amid an eight-month downtrend. While the Relative Strength Index (RSI) is near 36 and may be forming a bullish divergence, the Moving Average Convergence Divergence (MACD) indicator remains bearish.
The native token of the Bittensor network, TAO, is trading near $215 after declining more than 55% from its previous peak around $500. The asset has returned to a key support region between $175 and $215, an area that previously attracted buyers earlier this year.
TAO has remained in a sustained downtrend for the past eight months, characterized by a series of lower highs and lower lows. The decline accelerated in recent weeks as broader cryptocurrency market weakness weighed on risk assets.
The market is now revisiting the $175-$215 support range for a second time. Technical analysts often view repeated tests of major support zones as critical moments that can determine buyer and seller control.
The Relative Strength Index currently sits near 36, close to oversold territory. This difference has attracted attention because it may indicate a developing bullish divergence, suggesting bearish momentum is beginning to weaken.
However, the Moving Average Convergence Divergence indicator continues to reflect bearish conditions, as stated it remains below its signal line with no confirmed bullish crossover. As mentioned, traders remain cautious despite the proximity to major support.
