TAO Escapes 4‑Month Barrier – Will $400 Finally Materialize?

by

Bittensor (<a href="https://jpyxx.com/tao-usd/">TAO</a>) Escapes 4-Month Long Barrier, Yet Price May Not Reach $400

Bittensor (TAO) is currently trading at $322, a decrease of 6.97% for the day. It had previously reached $380 on March 26th.

Looking at the 2-day chart, TAO recently broke through a key resistance level of $306 – a level that had stopped it from rising for the past four months. However, the price hasn’t been able to continue moving upward after breaking through that level.

TAO Holders’ Sentiment Drove the Breakout

From March 3rd to March 26th, 2026, Santiment tracked public sentiment about TAO. Sentiment reached its peak on March 25th, exceeding 5.0, coinciding with the price rising towards $380. However, by the next day, March 26th, sentiment dropped dramatically to 0.684 as the price quickly fell back down.

We’ve seen this happen twice this month. On March 13th, positive sentiment surged, but the price quickly fell from $305 back to around $260. Then, on March 19th, another jump in positive sentiment was followed by a price drop from $290 to about $250. In both cases, high sentiment seemed to mark the peak price before it started to fall, rather than leading to continued gains.

Interested in more crypto analysis? Subscribe to Editor Harsh Notariya’s Daily Crypto Newsletter here.

While the current reading of 0.684 isn’t negative yet, the sharp drop from over 5.0 within a single session is very similar to past reversals. Positive sentiment previously fueled investment into TAO, driving up the price, but that sentiment is now fading, and with it, the buying pressure that caused the recent increase.

Breaking This Ceiling Will Prove Beneficial For TAO

The TAO liquidation heatmap analyzes activity from March 26th and 27th. It shows a high concentration of leveraged positions being liquidated around $364, totaling $2.98 million at that specific price. Above $364, the total value of short positions that were liquidated reaches $17.81 million.

If a significant short squeeze occurred, potentially worth $17.81 million, it could dramatically increase the price. Breaking through $364 would likely force traders who bet against the stock to buy it back, automatically pushing the price up to around $407, and possibly even $469. However, a large amount of leveraged trading around the $364 level could also limit gains, acting as a temporary barrier before any further price increase.

Market enthusiasm has faded, and the price has dropped from $380, failing to convincingly break through $364. A significant price increase, driven by a ‘short squeeze,’ would require new buying activity, but that isn’t apparent in current market data or price trends.

TAO Price Prediction: Drop Back Into the $306 Zone Before Any Continuation

As an analyst, I’ve been watching TAO closely. After a four-month period of stabilization around the $306 resistance level – specifically, the 0.618 Fibonacci retracement – we’ve finally seen a breakout. This move has resulted in a significant gain of over 20% in just the past week, as TAO has successfully moved above that key resistance point.

The Money Flow Index (MFI) is reinforcing the expectation that prices will likely fall in the short term. Last week, MFI showed it was overbought, and historically, whenever this has happened, the price has soon reached a peak.

In September 2024 and May 2025, the Money Flow Index (MFI) signaled overbought conditions for TAO, first when the price was around $700 and later near $450. Currently, with an MFI reading of 77.79, TAO is again showing similar overbought levels, which previously led to noticeable price declines.

TAO is currently trading above its previous resistance level of $322. However, if the price falls below $306 at the end of a trading day, it would suggest the upward breakout has failed. In that case, traders would likely look for support around $275 and then $243.

If the price stays above $364 for two days, it could trigger a significant rally for the token. This would likely start a ‘short squeeze,’ where traders who bet against the price are forced to buy, potentially driving the price up to $407 and then $469. However, if the price fails to stay above $364, it risks falling back into a previous trading range it recently broke out of.

Read More

2026-03-27 20:33