TAO: Progressing in Third Downward Wave Within Primary Channel – Strategic Breakdown Short Setup


Bittensor (TAO) continues to maintain a persistent bearish structure on the daily timeframe, officially entering its third downward expansion wave inside a broad corrective channel. Reviewing the previous two decline cycles, the price action recorded steep drawdowns of 37% and 44%, respectively. Currently, the market is constructing a narrow consolidation channel within this leg, reflecting intense friction between buyers and sellers.


Based on the visual data from the daily chart , price action has been coiling tightly beneath the $200 psychological round-number level for the past two weeks. Although buyers are attempting to defend current levels, actual demand remains visibly exhausted, failing to push prices above the immediate $180–$183 resistance barrier. Remaining trapped fully underneath the dynamic MA100 trendline further amplifies overhead selling pressure.


Should historical drawdown patterns repeat, this downward wave is projected to drive prices into a deeper slide, targeting the strong $150–$160 support cushion before a potential bounce materializes. As a definitive breakdown signal has yet to fully confirm, the optimal approach is to patiently await a clear daily close below the narrow channel boundary to execute a Short position with a tight stop-loss.


Disclaimer: This is not financial advice, DYOR.