Latest Taiko (TAIKO) Price Analysis

1. Technical Breakdown (Bearish Impact)

Overview: TAIKO broke below its 7-day SMA ($0.197) and 30-day SMA ($0.209), with RSI (43.59) showing weakening momentum. The 23.6% Fibonacci retracement level at $0.232 failed to hold as support.

What this means: Technical traders likely exited positions when the price fell below $0.20, a psychological support level. The MACD histogram turning positive (+0.0028) suggests some buying interest, but not enough to reverse the trend.

Key level to watch: $0.177 swing low from December 3 – a break below could accelerate selling.

2. Post-Fusaka Profit-Taking (Mixed Impact)

Overview: While Taiko is positioned as a key beneficiary of Ethereum’s Fusaka upgrade (live since Dec 3), some holders appear to be selling the news. The upgrade improves data availability for L2s like Taiko but coincided with a 57.5% drop in trading volume.

What this means: Short-term traders may be rotating capital after the upgrade’s mainnet activation phase concluded on Dec 9. However, the COO highlighted Fusaka’s long-term benefits for Taiko’s transaction finality and costs in recent comments.

3. Altcoin Liquidity Crunch (Bearish Impact)

Overview: Crypto markets saw $151B spot volume (-37.8% 24h) with Bitcoin dominance at 58.8%. The Altcoin Season Index hit 18/100 – its lowest since April 2025 – indicating capital flight from riskier assets.

What this means: TAIKO’s 24h volume plunged to $5.83M (-57.5%), exacerbating price swings. Turnover ratio (volume/market cap) of 0.162 suggests thin liquidity magnifying downward moves.

Conclusion

TAIKO’s drop combines technical triggers with sector-wide risk aversion, despite solid Ethereum upgrade fundamentals. The token now tests a crucial support zone from early December.

Key watch: Can TAIKO hold above $0.177 support while Bitcoin dominance remains elevated? Monitor Ethereum L2 fee metrics post-Fusaka for fundamental demand signals.

Deep Dive

1. Ethereum Fusaka Upgrade (Bullish Impact)

Overview: Ethereum’s Fusaka upgrade activated on December 3 introduced PeerDAS, reducing Layer 2 data costs by ~85% and increasing throughput 8x. Taiko, as an L1-sequenced rollup, directly benefits from these optimizations.

What this means:
- Lower fees and faster finality (near-instant preconfirmations via EIP-7917) could drive adoption of Taiko’s network.
- COO Joaquin Mendes emphasized Taiko’s readiness to leverage Fusaka’s data availability improvements, positioning it as a top beneficiary (CoinMarketCap).

What to look out for: December 9’s “Blob Parameter Only” fork, which increases blob targets to 10 per block, further boosting Taiko’s scalability.

2. Technical Indicators (Mixed Signals)

Overview: TAIKO’s price ($0.201) sits below key EMAs (30-day: $0.21, 200-day: $0.39), but the MACD histogram turned positive (+0.00314) for the first time in two weeks.

What this means:
- Bearish pressure remains dominant (RSI14 at 50.32 shows neutral momentum).
- Short-term bullish divergence – MACD crossover suggests possible local bottom, though volume (-25.5% to $23.5M) lacks conviction.

Key level: A close above the 30-day SMA ($0.2096) could signal trend reversal.

Conclusion

While TAIKO’s 24h drop aligns with broader market weakness, Fusaka-driven efficiency gains and improving technicals hint at accumulation. The token’s fate hinges on Ethereum’s upgrade execution and sustained developer traction.

Key watch: Taiko’s transaction metrics post-Fusaka’s December 9 fork – rising activity could validate its L2 edge.