Prominent cryptocurrency analyst Ali Martinez has identified a significant technical signal on the Bittensor (TAO) chart that has historically preceded substantial price increases. The TD Sequential indicator, a momentum exhaustion and reversal tool, has flashed a "buy" signal on the TAO 4-hour chart.
The chart analysis reveals a textbook setup: the indicator counted nine bars in sequence, culminating in a green candle at the completion of the pattern, which constitutes the buy signal. This exact formation has appeared twice before, with highly predictable outcomes. The first instance triggered a 9% price surge for TAO, while the second led to a more substantial 19% rally.
Currently, the TAO price is trading near $263.60, having already risen almost 19% in the recent session—a move that aligns with the larger of the two previous signal-driven rallies. Analyst Ali Martinez, via his X account @alicharts, highlighted the pattern's return, shifting the focus from whether TAO will react to the magnitude of the impending move.
The chart outlines clear upside targets if the historical pattern repeats. A 9% move from current levels would push TAO to approximately $287, while a 19% rally would target around $313. The chart further marks subsequent resistance levels at $275, $293, $310, $328, and $352, suggesting a potential path for continued upward momentum if the initial resistance is broken.
The efficacy of the TD Sequential on TAO is attributed to the token's characteristic price behavior, which involves sharp, trending movements followed by periods of quiet consolidation. The buy signals have consistently appeared at the end of these consolidation phases, effectively catching turning points.
While the historical precedent is bullish, the analysis acknowledges the possibility of signal failure. In such a scenario, key support levels are identified at $245, $230, and $215—the latter representing a roughly 20% decline from current prices. The immediate level to watch is the $275 resistance zone; a break above it could open the path toward the higher targets.
