The price of the leading artificial intelligence-related token Bittensor (TAO) has trended within an ascending channel since early September. Trading at $575 as of this writing, the altcoin has since noted a 150% uptick.

However, as buying pressure loses momentum, TAO is poised to shed some of these gains. This analysis highlights what token holders should look out for. 

Bittensor May Lose the Support of Bulls

Bittensor’s price has remained within an ascending channel since the beginning of September. This channel is formed when an asset’s price consistently makes higher highs and higher lows over a given period, creating a clear uptrend. The upper line of the channel represents resistance, while the lower line represents support, where buying interest usually increases. 

However, due to waning demand for the altcoin, Bittensor currently trades close to the lower line of its ascending channel at $558.80.

Read more: How to Invest in Artificial Intelligence (AI) Cryptocurrencies

When an asset trades near this lower line, it means the price is close to the channel’s support level. At this point, buyers often step in to push the price back up, making it a potential entry point for traders.

However, if the asset fails to hold above this lower line and breaks below the channel, it signals a weakening uptrend or the start of a bearish reversal.

BeinCrypto’s assessment of TAO’s key indicators reveals that this might be true for the altcoin. For example, its Chaikin Money Flow (CMF) is on a downward trend, below the zero line at -0.21.

This indicator measur

Go to Source to See Full Article
Author: Abiodun Oladokun