Bittensor’s native asset TAO remains weak after sagging below a key horizontal support level. The fact that the price remains below this zone indicates that sellers continue to dominate in the short term. The limited momentum on the buying side shows that the downward pressure has not completely disappeared.
Technical outlook remains weak
While TAO was traded at $186.96 at the time of the news, its 24-hour volume was $137.18 million and its market value was $2.09 billion. Although the short-term price structure of the asset, which has decreased by 3.31% in the last 24 hours, remains under pressure, some analysts do not completely exclude the possibility of recovery in the later stage.
Alpha Crypto Signal notes that TAO has broken down a critical horizontal support level, weakening the short-term market structure. According to the analyst, this break reveals that the downward momentum is gaining strength and the old support zone can now work as resistance.
Alpha Crypto Signal emphasizes that as long as TAO remains below the lost support zone, downward pressure will be maintained, while exceeding this level again can significantly improve the outlook.
TradingView data also points to an unfavorable picture with lower highs and lower lows, despite recovery attempts. The price seems to be holding just above the crucial support area, around $186.79. If it falls below this level, losses may deepen. On the other hand, re-entering the range between 195 and 200 dollars may support the buying appetite.
Indicators show buyers remain weak
The RSI, the relative strength index, is at 37.6. While this value remains below the 50 level, which is considered neutral, it does not yet indicate the oversold region. This outlook reveals that a strong buyer return in the market is not clear at this stage.
The MACD indicator continues to remain in the negative zone. Although the fact that the signal lines are close to horizontal suggests that the selling pressure may have eased somewhat compared to the previous period, it appears that the downward momentum has not completely disappeared.
The general trend in the market also creates pressure
The pullback in TAO is not solely due to asset-specific technical weakness. The downward move in Bitcoin is also limiting risk appetite in the broader cryptocurrency market. Therefore, TAO price is at a critical threshold just above the support zone.
If buyers regain the $195 to $200 band, the possibility of a reversal in the outlook may become stronger and the price may regain momentum towards $200. However, as long as this zone is not exceeded, the dominant trend may continue to remain downward.
If the price regains the lost level, it will indicate that the downward formation has been broken and purchasing power may come to the fore again.
Bittensor is known as an artificial intelligence-focused decentralized network and the TAO token is used as the native asset of this ecosystem. Therefore, price action on TAO remains sensitive to both technical levels and the overall market trend.
