The Bittensor protocol's native cryptocurrency, TAO, is experiencing low volatility as it trades at around $245. Despite this calm exterior, analysts are warning of a potential bearish breakout to $200.
A classic reversal pattern called head and shoulders has formed on the 4-hour chart, indicating that the price could drop further. This pattern consists of a left shoulder, central head, and right shoulder, with the current price developing in the right shoulder phase.
Historically, this pattern results in a decisive breakdown of the neckline support, leading to a prolonged drop in price. The relative strength index (RSI) is currently at 42%, supporting the bearish narrative.