TAO Powers Through Resistance as Halving Event Approaches

Market Pulse

• TAO has already managed to break above the primary resistance of $400 convincingly and is now being traded at $424 with the buildup of genuine trend strength.
• The first-ever staked TAO exchange-traded product in Europe started trading this week and opened the entry for the institutional investors.
• The upcoming December halving of the emissions cut which is a promise to take away the supply while the demand gets better is on the horizon.

Bittensor’s TAO has marked a move of significant magnitude over the past month by cracking 36.6% increase, a move from $309 support to the current range of $424. The rise was accelerated after Deutsche Digital Assets and Safello made public the staked TAO ETP, Europe’s first, resulting in a prime example for the opening of the institutional door. The most crucial issue for the traders is: whether TAO can hold on to his current position even with the upcoming halving in December which will reduce the daily emissions by half?

RSI Momentum Signals Room to Run

At present, the RSI index is at 58.0 and on the daily timeframe, this makes TAO a perfectly neutral subject in which both directional trades can be made. This balanced index means that the recent jump of 36% has not yet placed the asset in the overheating zone. The same RSI distributions in October ended up being TAO’s osmosis sublimation from $400 to $700, however, the current market structure is considerably different.

This reason’s already mentioned isoelectrically trade lines with money flowas are money flows are also money flows sine waves of emotion traders asininely disks are money flows. Swing traders can see this neutral RSI as a potential upside move as a continuation without the risk of immediate overbought conditions. The upcoming halving event not only serves as a fundamental factor but also it was not available at the time of the past readings of RSI at this level. According to the historical records of TAO about 90% of the time when RSI is at 55-65 it indicates a prolonged market trend. If the trader understands these figures well he looks at them as a% increase of his trade which is a better position to set at the moment before the actual supply shock.

ADX Shows Trend Gaining Traction

An entry of ADX at 13.4 means that even though it has not achieved any extreme level yet, it is in the process of establishing a new trend. In the first place, the presence of such a reading implies that TAO is changing from the period of consolidation that was present in early December to a trending state. This value under 25 is often associated with stronger movements which are built by a slow process of momentum rather than the quick one.

To summarize the ADX, it is indicating that the situation is changing from boundary conditions to a trending state just like the halving narrative receiving market attention. This way, intraday traders should modify their strategy of capturing trend continuation setups instead of mean reversion plays. The launching of institutional products along with the future supply decrease forms the perfect environment for directional sustainment.

EMA Structure Confirms Bullish Alignment

Price action is clearly visible through the EMA ribbons; the TAO has set its position above the 10-day ($413), 20-day ($380), and most importantly, the 50-day EMA at $397. The 100-day EMA at $373 is now the main trend support as the price was able to regain it during the last week’s sustained upward movement. The level has been up to the task of preventing breakthroughs that have come in three different occasions in November before a final break happened due to the ETP announcement.

The section $373-$397 which impeded the price movement now becomes the essential territory that the bulls have to defend. The situation of the shorter-term averages on top of the longer-term ones is just the opposite of the bearish conditions and it shows the strength of the bulls which usually means an extended upward movement. EMAs on the weekly timeframe provide a deeper bullish view, the 10-week at $441 being the next target to focus on, while the 20-week at $438 reinforces that resistance area.

Key Levels Define the Battlefield

The short-term obstacles are in the range of $440 to the weekly high of $479 where December peaks overlap with the monthly pivot point. This range is the last resistance standing in TAO’s path before it continues to price discovery mode prior to halving. A break above $479 will result in the measure move targets around $520 being met, as well as Fibonacci extensions from latest consolidation base.

This week’s increase in value has made support architecture more formidable than before. The psychological level of $400 is now matched with the 20-day EMA which is on a rising trend, thereby creating a confluence zone that is expected to attract buyers on any pullback. Under that, the $373-$380 zone that the 50-day and 100-day EMAs intermingle with is the dividing line for the bullish argument.

The market system shows that the buyers’ market is alive and well, as long as TAO does not fall below $397 on any retracement faced. The series of higher lows that went as low as $309 but up to $340 and finally to the current levels of TAO verify the accumulation patterns that most investors have seen before the halving activity. Volume patterns also attest to the assumption of the market with every push to the upside observed the expanding participation and the pullbacks which see the less selling pressure.

The Path Forward

To provide the breakout continuation signal the bulls have to make sure that it is a must to close a day above $440. At the same time, the halving countdown is a primary catalyst that is driving the price up. With that, the provision of institutional right through the new ETP depicts the time when there will be less product and large-scale profits will kick in. Such is evidenced by the signals presented by momentum indicators, which show that there will be more profits as long as $400 is secured as support.

A scenario that goes bearish comes into play if the price bounces back stubbornly at $440 and goes down below $397 with increased trades; this will ensnare the recent schedule and most likely send it toward $373. Giving up on the 50-day EMA would indicate big short-trend exhaustion as the halving period arrives, and this may, in turn, form a sell-the-news scheme that wakes up the late long positions to the surprise.

Considering the present momentum direction and the two factors responsible for it, institutional products, and supply cut-off, the most likely immediate scenario is TAO’s consolidation in the $410-440 range prior to making a bounce towards $479 which is the target before the halving event in December.