Bittensor is feeling the weight of a broader downturn in AI-related assets, with the token sliding closer to the important $300 support level.
The move reflects mounting market anxiety as traders watch how AI sector weakness is spilling into crypto.
AI Market Pressure Pulls $TAO Lower
The current decline began after SoftBank sold its entire NVIDIA position, a decision that shook confidence across AI exposed markets. The reaction was immediate.
Key trends include:
a. AI tokens dropped more than 5% following the selloff.
b. $TAO mirrored NVIDIA’s decline almost in real time.
c. Cross asset correlation between $TAO and major tech equities has strengthened.
d. Traders now see NVIDIA’s next earnings release as a short term market driver
This connection to traditional AI stocks has made $TAO more sensitive to broader sentiment swings.
Even though Bittensor’s long term fundamentals remain stable, macro pressure continues to override investor optimism.
Market Structure Shows Tightening Conditions
The recent pullback pushed $TAO below several important trend indicators. While the technical setup shows stress, it also highlights a narrow range in which traders are waiting for confirmation.
Recent signals include: Loss of the 200 day EMA, break below the 50% Fibonacci retracement, RSI holding near bearish territory and MACD showing increasing downward momentum
Even with these warning signs, $TAO is still trading inside a horizontal channel between two important areas:
a. Support near $300
b. Resistance near $360
This range reflects hesitation rather than collapse. Volume history shows heavier activity near price peaks and lighter activity at bottoms, a pattern that sometimes precedes relief moves.
The near term focus is the $302 to $313 zone, where buyers are attempting to slow the decline and spark a bounce toward the $330 to $340 region. A move above $350 would be the first signal that momentum is turning.
If strength returns, the next resistance levels sit near $357, $414 and $479
A failure to defend $300, however, opens the door to deeper losses toward $268 and $212 in an extended downturn
Broader Crypto Weakness Adds Pressure
$TAO’s struggle is happening alongside a wider pullback across the market. Liquidity has thinned quickly due to several factors:
a. More than $500 million in recent liquidations
b. A Fear and Greed Index reading deep in “extreme fear”
c. Rising Bitcoin dominance
d. Heavy sell side volume across altcoins
These conditions have pushed $TAO’s trading volume upward, signaling that current moves are driven largely by panic rather than accumulation.
What Traders Are Watching Next
For now, all eyes remain on the $300 support level. If $TAO can hold this area and stabilize, buyers may have enough room to build a recovery. If it fails, the market could see sharper declines in the days ahead.The next major catalyst is likely NVIDIA’s earnings report, which may either calm markets or trigger another wave of volatility across both AI stocks and AI linked tokens such as Bittensor.
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