TAO Price Struggles to Reverse Daily Bearish Trend

As some analysts have pointed out, purchasing TAO at its current level feels reminiscent of buying Bitcoin when it was under $300. Over the last 24 hours, TAO has experienced a decline of approximately 5-6% and is now trading in the mid-$200s. Despite this recent downturn, the cryptocurrency remains significantly higher compared to early 2025 levels.

Key Takeaways

TAO has seen a drop of 5-6% within the past 24 hours, trading between $250 and $265.
The asset maintains a structurally bullish outlook year-to-date, albeit in a mid-cycle drawdown.
Momentum indicators signal a weakening bullish trend, with the MACD reflecting a shift towards renewed bearishness.
Immediate resistance is encountered, and sustained selling pressure could lead to further declines.

TAO price chart showing persistent bearish pressure

Current Price Trends for TAO

The spot price of TAO is currently around $250 to $265, showing a 24-hour change between -5.5% to -8%, depending on the trading venue. Although this represents a negative performance year-to-date compared to January's opening price, it remains significantly higher than its past performance in 2023 and early 2024. The asset's fundamental structure seems to be more robust than in previous cycles.

Technical analysis indicates a decline in bullish momentum. The Moving Average Convergence Divergence (MACD) has transitioned from a recovery phase to a renewed weakness phase, while the Relative Strength Index (RSI) is trending downwards, suggesting bearish control without reaching extreme oversold territory.

TAO price bulls fail to reverse daily bearish trend structure - 1

TAO is now facing immediate resistance that was previously support. Breaking this short-term ceiling could enable a test of higher price zones, although increased selling pressure is likely at those levels. A more significant price shift would necessitate a definitive break above the broader structural resistance, which would demonstrate that buyers are regaining control.

Should selling pressure persist, a key support cluster nearby may attract buyers trying to stabilize the price. Failing to maintain this support could weaken the technical outlook and expose the cryptocurrency to further declines.

Order book data suggests large buy orders are placed below the current price, indicating that some traders are ready to defend these lower support levels. Significant sell orders at mid-range prices also suggest heavy supply exists overhead. In order to clear these sell orders, increased momentum and volume will be essential.

Market observers recommend that long positions may benefit from short-term tactical setups rather than looking for trends, considering the ongoing bearish broader market structure. Short strategies may be more aligned with current trends, especially during rallies that hit resistance, although volatility around significant support areas remains a concern.

Market Outlook: Bullish or Bearish?

Short-Term (24-hour):
Bearish. With momentum trending downwards and candles showing corrective patterns, the position is under the recent local support. Any bullish approach here is tactical in nature, focusing on short-term opportunities rather than following trends.

Year-to-Date / Cycle Assessment:
Cautiously bullish. TAO is fundamentally linked to AI infrastructure and scarcity due to halving events. While it remains above previous historical ranges, it is currently experiencing a mid-cycle drawdown that carries downside risks if assets linked to AI continue to depreciate.