An investor states that Bittensor (TAO), which is currently on the verge of breaking out from the bull flag, could reach values ranging from $5,000 to $6,000. This market prediction from the analyst comes at a time when TAO was not even able to hold above the 50-day moving average at $275.
Bittensor loses 50-day moving average
Priced at $270, Bittensor (TAO) lost about 4% of its value during the past 24 hours. The value shed during the past 24 hours was significant as TAO lost a major support level—the 50-day moving average—during the course of the day.
Some traders, when they saw the price rising above the 50-day MA, started taking profits as they viewed the level as an important technical milestone or a potential take-profit zone. Such behavior happens because the 50-day MA is widely used by traders to gauge the medium-term trend and determine whether an asset is recovering or entering a stronger bullish phase.
Many traders who entered at lower prices may see a move toward the 50-day MA as the completion of a short-term trade. After sitting through uncertainty or a prolonged downtrend, they often prefer to secure gains rather than risk a sudden reversal.
Others consider the level a potential resistance area because prices frequently struggle around major moving averages before establishing a clearer direction.
There is also a psychological factor involved. Since a large number of market participants monitor the same indicator, traders expect that others may begin selling around that zone. This can create a self-fulfilling reaction where increasing sell orders start to emerge near the moving average.
As a result, profit-taking activity rises, momentum slows, and the asset can experience temporary pullbacks or consolidation before deciding its next move. However, the TAO price is still holding above the 200-day MA, which is a long-term indicator.
Analyst predicts TAO to hit above $5,000
Despite TAO losing the 50-day MA on the daily chart, an investor who goes by the pseudonym Pure8 on X predicted that TAO would hit a target of $5,000-$6,000, purely based on the technical setup of a bull flag and the annual inflation of 12.5% after the halving.
A shift towards a price target of $5,000–$6,000 from the current level of about $270 would necessitate an unprecedented rally of approximately 18–22 times the current price point. Although bull flags can help in measuring target prices, technical formations cannot assure that the targeted levels will be achieved. This would call for increased flows of funds, wide adoption in the network, and positive sentiment among all players in the market.
TAO would need capital inflows and stronger network adoption
Such a move would likely require a massive increase in capital inflows, stronger network adoption, sustained market-wide bullish sentiment, and a significant expansion in TAO’s market capitalization.
Despite halving and a reduced inflation rate of 12.5%, the effects would be more pronounced on the supply side, as the reduction in supply alone is insufficient to support a cryptocurrency’s exponential rise. There should be an increase in demand that can absorb the already available supply while pulling in additional capital.
Furthermore, failure to hold above the 50-day moving average on the daily chart could also suggest a lack of bullish momentum in the short term. If buyers cannot reverse declines below key technical support areas, the asset may continue consolidating until another direction becomes apparent.
Thus, reaching a target of $5,000-$6,000 may be possible within a purely technical framework, but achieving those levels will require much more than just a chart pattern and lower inflation figures.
