Bittensor's token TAO continued to face pressure, with its price briefly falling to around $214 before recovering slightly to around $216. The article points out that this pullback is not merely a short-term fluctuation; both spot and futures market trading is weakening, indicating that selling pressure remains dominant.
Falling into low liquidity range
From a daily chart perspective, TAO is testing the upward support line that has been supporting its trend since February. Although it briefly held above $214 during the session, the rebound was limited, and buying interest did not increase significantly.
The trading volume distribution also shows that the main trading volume was concentrated between $260 and $320, with the largest trading area around $280. The current price has clearly broken below this range and entered a relatively low-liquidity zone. This means that once the support level is breached, the price decline could accelerate.
Both spot and futures data weakened.
More direct than graphs are order flow data. The cumulative volume difference (CVD) between spot and futures markets is declining, reflecting that real selling pressure is continuously exiting the market, rather than just short-term disturbances from highly leveraged funds.
Meanwhile, funding rates remain positive, indicating that long positions have not been fully liquidated. During price declines, continued crowding of long positions often increases subsequent liquidation pressure.
Open interest is also falling, indicating that traders are more inclined to close out their positions rather than establish new long positions at current levels.
- The latest price for TAO is approximately $216.34.
- The key support level is between $213 and $216.
- The main liquidity zone below is between $195 and $200.
AI-driven narrative shifts negatively impact mood.
The article also mentions that the recent intensification of competition in the AI field is also affecting market sentiment for decentralized AI tokens. As centralized AI companies such as Anthropic continue to make new progress, some funds are shifting their attention back to large centralized models, cooling down short-term speculative demand in the decentralized AI sector.
For TAO, whether it can regain the $228-$232 range is a crucial level for determining whether its short-term trend has recovered. If it fails to recover this area for an extended period, the market may turn its attention to the support level around $200.
