Understanding TAO's Recent Movement: What Lies Ahead for Bittensor?

Bittensor's TAO has experienced a decline in its market structure due to losing key support levels. The overall trading conditions suggest seller dominance, affecting the future prospects of the cryptocurrency.

Key Takeaways

The $290 level acted as a significant demand area, and dropping below it has shifted Bittensor’s short-term market trend to bearish.
Market data indicates a sell-heavy approach in the Spot Taker Cumulative Volume Delta, with increased volume coming primarily from aggressive selling rather than accumulation.
Trading activity for Bittensor surged recently, with TAO achieving a 24-hour trading volume of $1.5 billion, one of its strongest spikes since early October.
Recent trends highlight that sellers are firmly controlling both the Spot and Futures markets.

TAO trading volume Source: Token Terminal

Bittensor Analysis

Sellers Gain Upper Hand as TAO Exceeds Key Support

The structural integrity of TAO has weakened significantly following its drop below the $290 support level, a critical base since July that previously prompted price reversals. Following its peak on November 1, sellers have maintained control, leading to a series of quick sell-offs with the cryptocurrency printing several consecutive red candles throughout November.

TAO price analysis Source: TradingView

Losing the $290 threshold has removed a major demand zone for TAO, leaving it vulnerable to further declines with no solid support in sight. The Spot Taker Cumulative Volume Delta from CryptoQuant indicates a persistent skew towards selling, with red signals dominating recent trading sessions, pointing to more aggressive market selling.

Moreover, Spot buying volume has significantly reduced, making it tough for TAO to recover beyond a few trading sessions.

TAO 90-day cumulative volume delta Source: CryptoQuant

Will TAO Bounce Back or Continue its Downward Trend?

The upcoming trajectory for TAO largely depends on whether buyers can come back into the market with stronger volume. A potential short-term bounce could occur should demand start to rally sharply. On the other hand, ongoing seller dominance and the confirmed drop below the $290 support level continue to maintain a bearish outlook for the cryptocurrency.