A chart formation is ahead of a potentially explosive rally

What happens after the one-month peak is reached for TAO?

Bittensor (TAO) has been up by double digits for the past seven days, and some analysts expect this could be the start of a more significant rally.

At the same time, certain indicators show that a short-term correction is also a viable option.

Further successes ahead?

As of this writing, TAO is trading around $213 (per CoinGecko), making it the best daily performer among the top 100 cryptocurrencies after a 9% rise over the period. Its market capitalization exceeded 2 billion psychological dollars, thereby replacing well-known altcoins such as OKB, ASTER and others.

Noted analyst Ali Martinez noted the strong activity of TAO and observed the possible formation of Adam and Eve pattern in its price chart. It consists of two bottoms: the sharp dip of “Adam” and the rounded dip of “Eve”. The structure is generally considered to be healthy because it indicates that sellers have lost momentum and can be replaced by buyers. Martinez estimated that in this case the price of TAO could rise to $270.

User X GalaxyTrading is also very optimistic. They recently described TAO as “the most transparent 10x coin for the next altcoin phase”. The analyst argued that the asset could emerge as a dominant figure in the crypto space thanks to the development of artificial intelligence.

ZAYK charts are also included. Earlier this week, they speculated that the original Bittensor token was moving within a descending channel and predicted that a break above $200 could open the door to a potential 100% rally to around $400.

Moving south is also an option

Despite the prevailing optimism among traders and analysts, some technical indicators indicate that the value of TAO may decline in the near future.

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The Relative Strength Index (RSI), which measures the speed and magnitude of recent price movements, rose above 70. This indicates that the token is overbought and may be on the verge of a short-term reversal. The index ranges from 0 to 100, and vice versa, ratios below 30 are usually interpreted as buying opportunities.

The next factor on the list is the TAO exchange flow. Data from CoinGlass shows that over the past few days, inflows have outnumbered outflows, indicating that investors have shifted from abstinence to centralized platforms. This is often seen as a pre-sale step.