The TAO price pumped 17% this week and is now trading around $432. However, crypto veteran Ali Martinez just posted a worrying chart to his 127k followers on X.

Let’s break it down to figure out where could the Bittensor price go from here.

TAO might have been one of the top performers last week, but the bigger picture isn’t looking too hot. The chart has been printing lower highs since reaching its peak around $700-800, and those lower lows keep pushing the price down into the $200s. Even though we’ve seen a nice bounce recently, it hasn’t really changed the main downtrend.

The price is currently sitting around $432, trying to hold onto the $400-450 zone. This area has been important in the past, acting as both support and resistance. But here’s the thing – it’s not showing much strength right now, and the price isn’t getting the push higher it needs.

Yes, #Bittensor $TAO was among the top performers last week, but it remains in a downtrend and could retest the lower boundary of this channel at $220! pic.twitter.com/ggs87wNPTG

Looking at the chart, there are several key price zones traders are watching. At the top, we’ve got the $700-767 area – that’s where TAO hit its peak before turning south. Just below, the $680-700 zone has been giving the price a hard time, with multiple rejections. Then there’s the $550-560 range, which keeps acting like a ceiling every time TAO tries to push higher.

If the current support around $400-450 gives way, we could see the price drop to $350 first, and then potentially all the way down to that $220 level Martinez is talking about. That’s the lower boundary of this downward channel we’re seeing on the chart.

The recent jump in price might look good on paper, but it’s probably just a relief rally – something that happens even in strong downtrends. Unless the TAO price can break above $550 and then push through $680, which would be quite a feat, this downward trend isn’t going anywhere. In fact, if the price keeps following this pattern, that 49% drop to $220 that Martinez is warning about could very well happen.

Remember, even when we see these short-term bounces, they don’t necessarily mean the larger downtrend is over. Right now, the chart structure is telling us to stay cautious, especially with all these strong resistance levels looming overhead.

Read also: Why is Mantra (OM) Price Rising?

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The post Is Bittensor (TAO) Price Heading for a 49% Meltdown? The Chart Says Yes! appeared first on CaptainAltcoin.

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