- TAO completed its five-wave impulsive rally and three-wave correction, bottoming near $200 before entering its current range.
- Price consolidates between $337.79 support and $356.16 resistance, reflecting market indecision and tight compression.
- Neutral RSI near 50 and low trading volume suggest volatility expansion is likely, with a decisive move setting the next trend.
Bittensor’s native token TAO is currently consolidating near the $338.63 level, following a 2.9% decline over the last 24 hours. Price action remains confined within a wide sideways range that has held since mid-2024. The weekly chart reflects a completed five-wave impulsive rally, followed by a three-wave corrective structure.
This corrective phase appears to have ended, with price now coiling near key support. At the time of writing, TAO was trading close to its short-term support at $337.79, while facing resistance near $356.16. As the market moves towards volatility compression, market participants look forward to a sharp move in either direction.
Elliott Wave Structure Suggests Completion of Corrective Phase
On the higher timeframe, TAO’s price structure reflects clear Elliott Wave characteristics. The initial five-wave sequence, labeled from (1) to (5), pushed price into the $700–$800 range during 2024. This impulsive move was followed by an A-B-C correction, with each leg showing well-defined substructures. The corrective wave (C) completed around mid-2025, where price formed a local bottom near $200.
Since then, TAO has remained within a consolidation band. The completion of wave (C) coincided with a rebound from long-term horizontal support. This development marked the end of the wave (2) correction. However, the current trading range continues to reflect market indecision, with neither buyers nor sellers asserting strong dominance.
TAO Consolidates in Narrow Range as Market Awaits Breakout
The Relative Strength Index (RSI) below the price chart depicts an indifferent market environment. The RSI is currently close to the 50 level and has no apparent directional bias. Weekly candle volume is also low indicating that there is no momentum in either way. Nevertheless, low activity usually leads to a breakout particularly when the price is held tight over long durations.
TAO’s price currently trades within a narrow $18 band, with minimal deviation across multiple sessions. The consistent bounce off $337.79 highlights short-term demand, while repeated rejection near $356.16 confirms active selling pressure. This compression in range typically leads to volatility expansion, especially after extended sideways movement.
Furthermore, the fact that the RSI is in sync with price compression serves as an indicator that market conditions are on the verge of transition. Any bold action above or below the existing band would be the defining action of the next big wave . Until then, TAO will remain in its trading range that has been in place with the price standing just above its structural low at wave (C).
