TAO Price Momentum Strengthens — Could a Fresh Rally Be Next?
TAO has entered a consolidation phase after a strong recovery from recent lows, showing signs of bullish continuation as market indicators tilt in favor of buyers.
The token’s steady climb above short-term moving averages reflects strengthening momentum, though upcoming resistance levels could test the durability of the rally.
Bullish TAO Structure Supported by Momentum Indicators
The short-term 9-day EMA remains positioned well above the 20-day EMA, signaling an active bullish trend.
Momentum continues to favor buyers as the MACD line stays above its signal line, showing positive divergence and underlying market confidence.
Daily chart for WTAO/USD (Source: GeckoTerminal)
Meanwhile, the RSI trending above neutral territory near overbought conditions indicates that bulls remain in control, but the market could face minor exhaustion before the next leg up. This suggests a possible short-term consolidation before any decisive breakout.
Resistance and Support Zones in Play
TAO price action is now pressing against key resistance levels at $412.6, $427.6, and $436. Breaking above these zones could accelerate bullish momentum, opening the path toward the $450 psychological mark.
Clearing the $450 resistance, where a major ask wall sits with roughly 2,247 units (~$1.01 million USDT), could propel the token by approximately 12.78%. A stronger breakout above $500—another major liquidity cluster—could fuel a 25% rally toward new highs.
On the downside, TAO’s structure remains supported by multiple demand zones. The $376.6 and $372.5 levels provide immediate technical buffers, while deeper retracements could find buyers near $359.8, aligning with the 20-day EMA. A loss of this support, however, would invite short-term bearish pressure, possibly leading to a retest of the order book bid walls below.
Order Book Dynamics Highlight Key Liquidity Battles
Order book data paints a clear picture of trader sentiment.
Strong bid walls sit at $364, $330, and $300, collectively representing over $600,000 USDT in cumulative buying power. These walls act as safety nets, absorbing potential dips.
However, if the $364 wall were to collapse, the TAO price could slide nearly 9%, while a breach of $300 would expose TAO to a deeper 24.8% correction.
On the flip side, large ask walls at $430, $450, and $500 suggest that bulls must absorb over $2 million in sell-side liquidity to sustain an upward breakout—no small feat, but one supported by rising momentum indicators.
TAO Trading Strategy: Watching for Confirmation
For long traders, a confirmed breakout above $427.6 could serve as a strong entry signal, targeting the $450 and $500 levels, while setting stop-loss orders just below $376 to protect against pullbacks.
Short traders may look for rejection signals near $427–$436, aiming for downside retracements toward $372 or $359, though momentum indicators caution against aggressive shorting in this phase.
Overall, TAO’s technical outlook leans bullish, but short-term corrections remain possible as the market consolidates gains and liquidity clusters are tested on both sides of the order book.
Disclaimer: The information presented in this article is for informational and educational purposes only. It does not constitute financial advice. Ecoinimist is not responsible for any losses incurred. Readers should exercise caution before acting on this content.
