- TAO broke out of a falling-wedge structure on the 4-hour chart after prolonged downward compression.
- Price rose 8.9% in 24 hours to $305.57 while holding above the key support at $270.69.
- The chart outlines a projected 50% rally, with market attention focused on resistance at $305.04.
TAO posted a notable shift in structure after breaking above a falling-wedge pattern on the 4-hour chart. The move followed several sessions of compressed trading, which held the token in a narrow descending formation. However, the recent bullish expansion pushed the price to $305.57, marking an 8.9% rise over the past 24 hours. The chart also showed the breakout developing as the token tested the upper wedge boundary, a level that previously limited recovery attempts.
This activity came as the market continued to track support near $270.69, a zone that maintained relevance during prior pullbacks. With this structure now breached, traders observed renewed interest in how the asset handled emerging resistance at $305.04. The outlined chart projection also displayed expectations for a potential 50% upside within the week.
Breakout Forms After Prolonged Downward Compression
The breakout followed a long period of downward compression, which shaped the falling-wedge formation. The pattern began after an extended decline and held TAO within a tightening range. Moreover, repeated touches along the lower boundary emphasized how sellers controlled momentum during the earlier phases.
However, bullish attempts gradually increased, creating shorter downward swings and preparing the structure for a test of the upper trendline. This sequence supported the view that the market had been watching the wedge closely, especially as volume aligned with each approach to the boundary.
The recent move above the formation introduced a new focus on the token’s short-term behavior. Notably, the price now trades above both the upper wedge line and the resistance level highlighted at $305.04. These aligned in the same region, which added weight to the breakout’s significance.
Price Reaction Aligns With Strong Support Interaction
TAO’s advance also followed several interactions with support at $270.69. These interactions helped stabilize the market after earlier declines. The support zone held during repeated dips, which strengthened its role in recent analysis. Furthermore, the narrow 24-hour range showed how price approached the breakout with reduced volatility.
The reaction above resistance prompted observers to track the token’s intraday behavior more closely. With the move extending to $305.57, traders monitored whether the new level held through upcoming sessions. This development kept attention on how buyers maintained activity after crossing the wedge.
Market Watches Possible Extension After 50% Rally Projection
The chart indicated expectations for a potential 50% rally from the breakout zone. This projection appeared inside the marked green region, which outlined the anticipated move. However, traders also monitored the interaction between current price and nearby resistance to gauge the strength of the breakout. The ongoing evaluation focused on whether the token sustained momentum while staying above $305.04. The price remained within the highlighted structure, keeping interest on how the next sessions shaped the trend.
