BitTensor (TAO) Price Could Drop Below $500 Amid Surge in Selling

The price of Bittensor (TAO) has reversed the previous trend that had approached $700 just a few days ago, declining by 6% in the last 24 hours. This decline has pushed TAO's price below the critical $600 threshold. In this situation, the altcoin may struggle to maintain its current level, and according to this analysis, it could soon fall below $500. The reasons are as follows: Sellers have taken control of the TAO trend According to the cryptocurrency online data platform Santiment, the weighted sentiment for TAO has fallen into negative territory. This indicator reflects the overall perception of the cryptocurrency community towards the project, considering unique social volume. When the indicator is positive, market participants express confidence in the short-term profit potential. Conversely, a negative indicator suggests that most expect a decline. At the time of writing, TAO's sentiment indicator is -0.026, indicating an overall bearish outlook on the altcoin and suggesting that demand for TAO may decrease and the price may continue to decline. Another indicator that TAO's price may decline is the 20-day Exponential Moving Average (EMA). The 20 EMA averages the asset's price over the last 20 trading days, giving more weight to recent prices and making it more sensitive to recent price movements. When the price is above the EMA, the trend is bullish. However, if the price falls below this critical level, the token undergoes a correction. For example, a similar event occurred around July 31, when TAO's price fell 32% within 3 days. On August 28, the token fell below the 20 EMA, and its value decreased by 25% until September 6. If TAO falls below this threshold again, it could experience a double-digit correction. TAO price prediction: Further decline Closely examining the daily chart, BeInCrypto observes that the Moving Average Convergence Divergence (MACD) has turned negative. MACD is a technical indicator primarily used to measure momentum and identify trading trends. A positive MACD indicates rising momentum, suggesting the price may increase. Conversely, a negative MACD indicates bearish momentum. In the case of TAO, the MACD has crossed below the 12-day EMA (blue) under the 26-day EMA (orange), indicating that sellers are in control and reinforcing the bearish sentiment. If this condition persists, TAO's price could fall below the 38.2% support level to reach $452.30. Conversely, if the bulls manage to keep the altcoin from falling below the support, TAO could rise to $648.99.