El TAO Under Pressure: Technical Analysis Ahead of New Price Pullbacks

El tao, the native cryptocurrency of Bittensor, is in a critical phase of its market cycle. With a current price of $214.90 and a decline that significantly contrasts with its all-time high of $795.60, the asset has shown clear signs of technical weakening that concern analysts. The analysis published by specialists on X reflects a cautious assessment of the upcoming market movements.

Sell Distribution and Support Level Deterioration

Selling pressure on tao has intensified recently, manifesting in a clear distribution pattern at previous highs. What is more problematic is that the price has fallen to levels that historically served as supports but now act as resistances. This pattern, known as “support flip to resistance,” is a concerning technical indicator suggesting that buyers do not have enough strength to maintain those levels.

The series of successive retracements and decreasing highs evidence a consolidated bearish trend. In the current context, where tao experiences a +0.65% variation in 24 hours, this minimal recovery is insufficient to reverse the larger trend dominating the chart.

What Is Needed for a Price Rebound?

For tao to reverse its negative trajectory, a significant price rebound is urgently required to break the currently established resistance. Without this corrective movement, there is a risk that the asset will continue deteriorating toward new lows, deepening the erosion of investor confidence.

Technical analysis suggests that tao needs to gather enough buying volume to surpass the identified resistance levels. Only then can it avoid more negative developments in the market and recover the bullish momentum that characterized previous periods.