- $TAO remains in wave C of (2), with further downside likely toward $330 support.
- Market sentiment is cautious as traders await FOMC clarity and volume softens.
- Fibonacci zones between $330–$315 could trigger the next bullish impulse in wave (3).
Bittensor ($TAO) remains in a corrective phase despite a modest daily rebound. Current technical readings suggest the asset is still unfolding within wave C of (2), with analysts expecting potential downside continuation toward the $330 zone before the next impulsive move develops.
Wave C Extension Points to Ongoing Correction
According to a recent market outlook shared by @Morecryptoonl on X (formerly Twitter), “$TAO still appears to be unfolding within wave C of (2) in the white scenario. There is currently no sign that the ongoing pullback is complete, with the next key area expected around $330.”
The Elliott Wave structure displayed on the 1-hour chart indicates that Bittensor is still completing a three-wave correction (A–B–C) that began after topping near $540 in wave (1). Interim support has been provided by price at the 38.2% Fibonacci retracement level at $371.76, but there are no signals of any clear-cut reversal available. This means wave C has the potential to dig deeper before it finalizes a bottom.
The 50% retracement level of $343.98 and the 61.8–78.6% retracement band ($315–$289) remain significant levels of support where market participants look for potential setbacks to structural stabilization. As long as price stays above $289, the overall bullish scenario remains valid and indicates that the correction is a healthy pullback before the next wave up (3).
Market Stabilizes Near $395 but Momentum Slows
Bittensor is as of writing trading at $395.95, reflecting a 0.88% gain over 24 hours, as shown on CoinMarketCap. The asset recovered from the steep decline to around $380 in earlier sessions, reflecting the presence of buying interest at lower levels. Short-term relief is provided by this, but overall sentiment remains subdued due to prevailing uncertainty in the market and the upcoming FOMC announcement, which influences risk exposure by traders.
The platform fundamentals have a market capitalization of $4.02 billion and fully diluted value of $8.31 billion, with solid fundamentals. With 10.15 million circulating TAO tokens among a 21 million supply, the project has a fairly limited float, which is in favor of medium-term value potential. However, a drop in 24-hour trading volume by 10.91% to $275 million indicates a cooling-off spell for speculation.
The 6.83% volume-to-market-cap ratio implies reduced intraday liquidity but consistent underlying interest. Traders remain observant of the $400–$405 resistance zone, which has repeatedly rejected upward movement. A sustained trading beyond this level would be required to nullify the short-term bearish force.
Fibonacci Confluence Suggests a Critical Reversal Zone
Technical projections identify $330–$315 as a critical support zone, representing a Fibonacci confluence where wave C could potentially complete. This range also aligns with prior structural demand zones, making it a strong candidate for the next market reaction point.
Wave B’s earlier termination at the 0.786 Fibonacci level validates the current downward movement in wave C, consistent with a textbook Elliott Wave correction. Analysts expect that once wave C concludes, $TAO could begin a powerful wave (3) advance, typically characterized by strong momentum and expanding volume.
Until confirmation of reversal appears, traders remain cautious, with the current range between $380–$405 defining short-term behavior. A decisive move below $380 could expose $TAO to the $360 region, while holding above $389 may reinforce the likelihood of accumulation before the next impulse higher.
