Technical analysis by CryptoNuclear about Symbol TAO: Buy recommendation (8/31/2025)

🔎 Market Overview TAO/USDT is currently trading around 324 USDT, sitting right inside the key demand zone (305–345) that has been tested multiple times since late 2024. This area has repeatedly acted as a strong defensive wall for buyers, and once again the market is waiting for a big decision: bounce or breakdown. From April to August 2025, the chart shows a series of lower highs, reflecting continued selling pressure. However, the repeated defense of this demand zone suggests accumulation is possible if a strong bullish reaction appears. --- 🧩 Price Structure & Pattern Current pattern: Consolidation within the demand zone (305–345). Key characteristics: Buyers have successfully defended this level multiple times → potential accumulation area. Larger structure still shows minor downtrend (lower highs). A confirmed breakdown could trigger deeper sell-offs. In short, this is the battle zone between bulls and bears that will determine the medium-term direction. --- 📈 Bullish Scenario If price holds and bounces from the demand zone: Confirmation: Daily bullish candle closing above 345–350 with strong volume. Upside targets: 🎯 TP1: 389.8 (first resistance & short-term supply zone) 🎯 TP2: 432.0 (mid-term supply zone) 🎯 TP3: 475.7 (major resistance – key to shift medium-term trend) 🎯 Extensions: 564.8 – 608.5 – 710.9 – 745.0 ➡️ A successful bounce could form a double bottom / base formation. --- 📉 Bearish Scenario If price fails to hold the demand zone (daily close below 305): Confirmation: Breakdown candle with strong volume + failed retest. Downside targets: 🎯 265 – 235 (nearest supports) 🎯 167.7 (historical low – potential final target if strong selling pressure continues) ➡️ This would form a major support breakdown, potentially triggering a larger distribution phase. --- ⚖️ Technical Conclusion Current bias: Neutral to Bearish – downtrend structure remains, but bulls are still defending. 305–345 is the make-or-break zone. Bounce → potential rally towards 389–475. Breakdown → possible drop to 235 or even 167. --- 🛡️ Risk Management Notes Clear stop-loss levels: Bullish setup: SL below 305. Bearish setup: SL above 345–350 after breakdown. Scale into positions rather than going all-in. Watch for volume confirmation & momentum indicators (RSI/MACD) to avoid false breakouts. --- 📌 Extra Insights The 305–345 zone is not only a technical level but also a psychological price floor, tested multiple times. The structure of lower highs vs. strong support often resolves with a major breakout — meaning the next move could be very aggressive. Patience is key: traders should wait for a clear daily close confirmation before entering to avoid being trapped in a fake move. #TAO #Bittensor #TAOUSDT #CryptoAnalysis #TechnicalAnalysis #SupportResistance #Breakout #CryptoTrading #SwingTrading #PriceAction