Will TAO break above $500 soon, or is a sharp correction back to $284 more likely?

TAO tests heavy resistance near $480 as bulls fight to break out after a 192% surge from key support levels.

Crypto Patel warns that a 35–50% retracement is likely, with the golden pocket for re-entry sitting between $230 and $284.

A confirmed breakout above $500 could trigger a rally toward $1,000, but rejection risks remain high near current levels.

Bittensor (TAO) has gained over 192% recently, drawing attention to its next potential move. However, the price now tests key resistance, with signs of either continuation or sharp correction.

Technical Setup Signals Tight Price Pressure

TAO is currently trading around $433, closely beneath a resistance zone ranging from $484 to $643. This zone emerged after a powerful rally from the $167 support area, marked by a clean breakout. The recent trend shows symmetrical bullish waves forming as the price exits previous bearish structures.

As in the post above, bullish analyst Crypto Patel has provided insights into the asset’s current positioning. He highlights that TAO recently broke free from a descending channel, gaining nearly 200% in the process. According to Patel, this sharp move has brought TAO into a heavy supply zone with clear selling pressure.

The analyst notes long upper wicks on recent candles, indicating strong resistance around the $480 level. Price action remains volatile as buyers try to reclaim higher ground while sellers defend the overhead barrier. “A breakout above $500 could unlock the gates to $1,000 and beyond,” Patel explained in his market outlook.

However, the matter is far from resolved. Patel has warned of a likely pullback after such a strong rally. He outlines a potential 0.5 Fibonacci retracement near $284, down roughly 35% from the peak.

Fibonacci Tools Point to Crucial Levels Ahead

Patel’s analysis also references deeper Fibonacci levels between $250 and $230—an expected 50% correction zone. This area forms a technical “golden pocket” for long-term accumulation and possible re-entry. Beyond this, it’s important to recognize a structure-driven support area near $322, which may serve as an interim bounce zone.

Volume remains steady at 114K, reinforcing the validity of these zones in current trading conditions. Patel’s structural chart includes a projected path with impulsive waves reaching toward $1,200 and higher. Any breakdown below $200 would invalidate the bullish cycle and signal a reversal.

More intriguing is the fact that TAO’s historical price behavior supports this stair-step pattern of breakout and consolidation. While resistance holds, short-term risk remains elevated. Traders now watch closely for decisive action in either direction.

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