TAO extended its bearish move for the fourth consecutive day, dipping by more than 5% and inviting further bearish control. At the time of writing, TAO had lost 5.25% of its value in just over 24 hours to trade at $174.2. Trading volume jumped by 15% to $117.50 million. Such a hike in trading volume amid a fall in price means that TAO traders and investors are actively engaging with the current market trend, thereby strengthening the bearish outlook.
That’s not all though as according to a popular crypto analyst, TAO’s next major support level could be around $159. Based on the price action and historical chart patterns, if TAO holds below the key level, it could continue its downside move and may decline another 18% to reach the $144 liquidity level. On the daily chart, it was evident that the crypto crossed this key level twice in recent days. However, due to strong selling pressure and broader market sentiment, it failed to sustain a position above it.
The technical indicator Average Directional Index (ADX), which measures trend strength, had a value of 33.62, above the key threshold of 25. Traders at these levels built $1.89 million worth of long leveraged positions and $2.65 million worth of short leveraged positions, hinting at a bearish bias in the market. According to CryptoQuant, the 90-day Spot Taker CVD (Cumulative Volume Delta), buyers have been strongly dominating TAO, as indicated by consistent green bars over the past week.
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