TL;DR:
- Bittensor records its fourth consecutive day of losses, trading around $174 with a decline of over 5%.
- Trading volume increased by 15%, reinforcing the validity of the current market downtrend.
- Technical indicators suggest that if it fails to reclaim $207, the asset will seek liquidity at much lower levels.
It has been a high-tension week in the decentralized AI ecosystem, with focus shifting to the TAO price and $144 support as the new technical target. The token attempted but failed to reclaim the $207 psychological barrier; in fact, it has entered a downward spiral that already counts four sessions in the red.
Despite the drop in valuation, market participation grew, reaching a volume of $117.50 million. This increase in trading activity while the price retreats generally signals seller conviction, strengthening short-term pessimism.
Technical Indicator Analysis and Mixed Sentiment in Derivatives
From a technical perspective, the ADX indicator stands at 33.62, confirming considerable trend strength for the current movement. Furthermore, the recent reversal near the 0.618 Fibonacci level suggests that if pressure persists, the asset could drop an additional 18% until reaching the aforementioned liquidity zone.
In the futures market, Coinglass data reveals a bearish bias, with short positions exceeding $2.6 million at critical levels. However, it is not all negative, as CryptoQuant’s Spot Taker CVD shows that aggressive buyers are absorbing part of this supply in the spot market.
In summary, Bittensor is at a crossroads where the macro structure remains bearish as long as previous support levels are not reclaimed. Traders should closely monitor price action, as the lack of an immediate recovery could validate the capitulation scenario toward lower support levels.
