Bittensor (TAO) has experienced a positive performance over the past seven days, with its price increasing by 6.5%. However, within the last three days, the token underwent a correction, resulting in a 6.6% decline. This pullback has had an impact on several key technical indicators, as both momentum and trend strength are showing signs of weakening.

Despite the recent downturn, TAO has maintained critical support levels and remains above the $440 mark. Nevertheless, bearish signals are becoming increasingly apparent across various charts. The ability of the bulls to regain control or whether TAO falls below $400 will likely determine its next significant movement.

The DMI (Directional Movement Index) chart for TAO illustrates a weakening trend, with the ADX (Average Directional Index) plummeting from 47 to 23.16 over the past three days. The ADX assesses the intensity of a trend on a scale from 0 to 100, with values exceeding 25 usually indicating a robust trend, whereas readings below 20 suggest a weak or sideways market. Currently, TAO's ADX stands just above 23, implying that the recent trend is losing vigor and might be approaching a transitional phase. Despite this, according to CoinGecko data, Bittensor holds the position of the largest artificial intelligence coin in the market, outpacing competitors such as NEAR, ICP, and RENDER.

Simultaneously, the DI (Positive Directional Indicator) has decreased from 23.87 to 17.41, signaling a reduction in bullish pressure. Concurrently, the -DI (Negative Directional Indicator) has surged from 17.86 to 23.15, demonstrating that bearish momentum is gaining traction. This crossover, where -DI surpasses DI, indicates that sellers have taken precedence over buyers, and given that the ADX remains above 20, the downtrend could persist.

Should this divergence persist, TAO's price may encounter additional downward pressure in the near term unless buyers re-enter the market to alter the momentum.

TAO's Relative Strength Index (RSI) currently rests at 48.46, following a sharp intraday drop from 53.82 yesterday to as low as 35.25 just a few hours prior. The RSI serves as a momentum indicator gauging the pace and magnitude of recent price fluctuations on a scale from 0 to 100. Generally, readings above 70 imply overbought conditions and a potential for a correction, while values below 30 denote oversold conditions and a possible recovery. Levels between 30 and 70 are viewed as neutral, with the 50 mark frequently acting as a pivot point between bullish and bearish momentum.

TAO's present RSI of 48.46 positions it marginally below the midpoint, indicating a slight bearish inclination after a brief spell of heightened selling pressure. The recovery from the 35.25 low reveals that buyers have reentered the scene; however, the inability to sustain above 50 signifies that bullish momentum continues to be fragile. This level could symbolize consolidation or indecision in the market, where TAO might trade laterally unless new catalysts arise.

If the RSI stabilizes or ascends above 50 once more, it may signal renewed strength, whereas another descent toward 30 would heighten the risk of further downside.

TAO recently probed crucial support around $417.6 and rebounded above $440, exhibiting resilience following a transient dip. Its EMA lines still portray a bullish configuration, with short-term moving averages located above the long-term ones. Nonetheless, the diminishing gap between them suggests that momentum is waning. Should selling pressure resurface, the trend could reverse, jeopardizing Bittensor's status as the leading AI coin.

If Bittensor regains strength, it could target a retest of the $492.79 resistance zone, thereby recouping recent losses entirely.

Conversely, failing to uphold the $434 and $417.6 support levels would place TAO at risk of descending into a steeper downtrend. A breach beneath these areas could drag the price toward $380, driving TAO below $400 for the first time in approximately one week.

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