Bittensor (TAO) faces price volatility amid technical resistance

Bittensor (TAO) has recently experienced a price drawdown, falling nearly 7% in a 24-hour period following a rally on Raydium. Technical indicators, including a 14.3% decline in open interest and falling spot CVD, suggest a temporary lack of demand in both spot and derivatives markets. Key resistance levels are identified between $295 and $350, with the $300 mark serving as a critical psychological supply zone.

Despite recent volatility, long-term bullish factors remain, including the network's expansion to 129 active AI subnets and the impact of its first halving, which reduced daily emissions from 7,200 to 3,600 TAO. Institutional interest is also noted through Grayscale’s proposed spot TAO ETF. While the price remains significantly below its all-time high of approximately $800, analysts suggest that maintaining support between $234 and $258 is essential for the broader uptrend to remain intact.