TAO/USDT – Demand Zone: Potential Double Bottom or Breakdown

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🔎 Market Overview

TAO/USDT is currently trading around 324 USDT, sitting right inside the key demand zone (305–345) that has been tested multiple times since late 2024. This area has repeatedly acted as a strong defensive wall for buyers, and once again the market is waiting for a big decision: bounce or breakdown.

From April to August 2025, the chart shows a series of lower highs, reflecting continued selling pressure. However, the repeated defense of this demand zone suggests accumulation is possible if a strong bullish reaction appears.

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🧩 Price Structure & Pattern

Current pattern: Consolidation within the demand zone (305–345).

Key characteristics:

Buyers have successfully defended this level multiple times → potential accumulation area.

Larger structure still shows minor downtrend (lower highs).

A confirmed breakdown could trigger deeper sell-offs.


In short, this is the battle zone between bulls and bears that will determine the medium-term direction.

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📈 Bullish Scenario

If price holds and bounces from the demand zone:

Confirmation: Daily bullish candle closing above 345–350 with strong volume.

Upside targets:

🎯 TP1: 389.8 (first resistance & short-term supply zone)

🎯 TP2: 432.0 (mid-term supply zone)

🎯 TP3: 475.7 (major resistance – key to shift medium-term trend)

🎯 Extensions: 564.8 – 608.5 – 710.9 – 745.0


➡️ A successful bounce could form a double bottom / base formation.

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📉 Bearish Scenario

If price fails to hold the demand zone (daily close below 305):

Confirmation: Breakdown candle with strong volume + failed retest.

Downside targets:

🎯 265 – 235 (nearest supports)

🎯 167.7 (historical low – potential final target if strong selling pressure continues)


➡️ This would form a major support breakdown, potentially triggering a larger distribution phase.

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⚖️ Technical Conclusion

Current bias: Neutral to Bearish – downtrend structure remains, but bulls are still defending.

305–345 is the make-or-break zone.

Bounce → potential rally towards 389–475.

Breakdown → possible drop to 235 or even 167.

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🛡️ Risk Management Notes

Clear stop-loss levels:

Bullish setup: SL below 305.

Bearish setup: SL above 345–350 after breakdown.


Scale into positions rather than going all-in.

Watch for volume confirmation & momentum indicators (RSI/MACD) to avoid false breakouts.

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📌 Extra Insights

The 305–345 zone is not only a technical level but also a psychological price floor, tested multiple times.

The structure of lower highs vs. strong support often resolves with a major breakout — meaning the next move could be very aggressive.

Patience is key: traders should wait for a clear daily close confirmation before entering to avoid being trapped in a fake move.

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