TAO Tests Key Support After Breakout as Bulls Eye Higher Targets

TAO tests the $385–$410 support zone after an inverse head and shoulders breakout, aligning with the 50-day EMA for potential upside.

The bullish structure stays intact as long as TAO holds above $385, with declining volume signaling reduced selling pressure.

A confirmed breakout with strong volume and bullish moving average crossover suggests momentum toward the $500–$600 price range.

TAO is presently challenging a crucial support zone following its breakout from an inverse head and shoulders pattern, per analyst Alpha Crypto. A shift from bearish to bullish mood was confirmed by the breakout, which took place on the daily timescale. TAO is currently down 3.77%, trading at $400.8. This decline, however, places it in a technical confluence zone that spans $385 to $410. For bulls, this region is critical because it coincides with both the 50-day EMA and the prior breakthrough point. Holding above this level may therefore initiate the subsequent bullish phase towards the $500–$600 zone.

Breakout Pattern Validated with Volume and Moving Averages

Between March and April 2025, TAO formed an inverse head and shoulders pattern on the daily chart. The left shoulder appeared in mid-March, followed by a deeper low in April forming the head. A final higher low in mid-April completed the right shoulder. TAO broke above the neckline with strong volume confirmation. Additionally, the 50-day EMA crossed above the 100-day SMA, signaling growing bullish momentum.

Source: Alpha Crypto Signal

After the breakout, TAO rallied toward $500, encountering resistance just below that mark. Consequently, the price consolidated before retracing to its current level. The price action now forms a textbook retest setup, often seen before a continuation in trend. Moreover, volume has declined during this pullback, suggesting reduced selling pressure.

Critical Support Zone Holds the Key

The $385–$410 support zone is not only a previous breakout area but also aligns closely with the 50-day EMA. Besides, this level serves as the neckline of the completed reversal pattern. Hence, if TAO holds above it, buyers could regain control. Historical data also shows strong rejection from $325, establishing it as a secondary support in case the current level fails.

Additionally, the chart features a projected bullish path that begins at the current support zone. The projection anticipates a bounce followed by higher highs around $560. Moreover, the bullish structure remains valid as long as the price stays above $385 with growing volume.

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