{"id":39877,"date":"2026-01-23T01:12:46","date_gmt":"2026-01-22T17:12:46","guid":{"rendered":"https:\/\/www.vtmarkets.com\/uncategorized\/despite-a-short-term-drop-of-approximately-1-tao-is-forming-an-inverse-head-and-shoulders-pattern\/"},"modified":"2026-01-23T01:12:46","modified_gmt":"2026-01-22T17:12:46","slug":"despite-a-short-term-drop-of-approximately-1-tao-is-forming-an-inverse-head-and-shoulders-pattern","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-asia\/live-updates\/despite-a-short-term-drop-of-approximately-1-tao-is-forming-an-inverse-head-and-shoulders-pattern\/","title":{"rendered":"Despite a short-term drop of approximately 1%, TAO is forming an inverse head and shoulders pattern."},"content":{"rendered":"<p>Bittensor (TAO) is experiencing a short-term decline of around 1%, yet remains poised for a potential inverse head and shoulders pattern on the daily chart. This pattern often indicates a momentum shift after prolonged downward pressure, suggesting a possible upward trend.<\/p>\n<p>The crucial level on this chart is the neckline. Surpassing this point could see TAO targeting the $400 mark, a potential gain of over 65% from its current price. Entry strategies include waiting for a clear neckline break or a retrace to it, enabling better risk definition.<\/p>\n<p>TAO, a volatile crypto asset, is evaluated here based on price action and technical structure, not on speculation. Despite promising setups, risk management is key, as crypto markets can be highly unpredictable. Proper position sizing and discipline are critical for lasting success.<\/p>\n<p>We&#8217;re seeing what looks like an inverse head and shoulders pattern forming on the TAO daily chart, suggesting a potential momentum shift. This structure is particularly noteworthy after the extended downside we experienced following the market-wide correction in late 2025. A successful breakout could signal that the period of consolidation is ending.<\/p>\n<p>The critical level for us is the pattern&#8217;s neckline, which is holding back a potential measured move toward the $400 area. We&#8217;ve noticed that open interest in TAO perpetual futures has quietly increased by 15% over the last two weeks, suggesting new capital is positioning for a break. A clean move above this neckline would likely trigger a cascade of liquidations and new long positions.<\/p>\n<p>For those of us using options, the current environment is becoming favorable as implied volatility has recently fallen to a 90-day low. This makes strategies like buying call options or setting up bullish call spreads for March and April expirations relatively cheaper. A strike price just above the neckline could offer an attractive risk-to-reward profile on a breakout.<\/p>\n<p>If we are trading with leverage, chasing a breakout candle is a high-risk play. A more disciplined approach would be to wait for a confirmed break and retest of the neckline, using that level as clear invalidation. With funding rates on major exchanges currently neutral, there is little cost to holding a long position once a good entry is found.<\/p>\n<p>We must remember the kind of volatility TAO is capable of, especially recalling its sharp 40% correction in just one week during the bull run of mid-2025. Even with a clear technical pattern, disciplined position sizing and defined stop-losses are non-negotiable. This setup fails if we see a firm rejection at the neckline and a break below the right shoulder.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bittensor shows bullish potential with an inverse head and shoulders pattern; $400 target if neckline breaks.<\/p>\n","protected":false},"author":62,"featured_media":0,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-39877","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/39877","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=39877"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/39877\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=39877"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=39877"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=39877"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}