Bittensor (TAO) is currently experiencing a challenging period, marked by a prolonged bearish trend that has intensified selling pressure. This downward trajectory is further complicated by a fascinating divergence in market sentiment, where short-term trading behaviors conflict with signs of underlying long-term accumulation. Understanding these dynamics is crucial for grasping TAO's immediate future.
Persistent Bearish Pressure and Technical Outlook
TAO has been on a notable losing streak, declining for four consecutive days and recently dropping over 5% to trade around $174. This price depreciation has been met with a significant 15% increase in trading volume, a clear indicator that market participants are actively engaging with and strengthening the prevailing bearish trend. Technical analysis paints a similar picture, highlighting TAO's failure to reclaim the critical $207 level. If it continues to hold below this key resistance, analysts predict a potential further decline of 18%, targeting the $144 liquidity level. An immediate major support level is identified at $159, while the Average Directional Index (ADX) reinforces the strong directional momentum of the current trend.
Divergent Market Sentiments at Play
Despite the overwhelming technical signals pointing downwards, the broader market sentiment around TAO presents a more complex narrative. Derivatives data from platforms like Coinglass indicate a clear bearish bias among intraday traders. There are significantly more short-leveraged positions ($2.65 million) compared to long positions ($1.89 million) around key price levels, suggesting that many are betting on continued price drops. However, a contrasting story emerges from spot market data. CryptoQuant's 90-day Spot Taker Cumulative Volume Delta (CVD) reveals a strong dominance of aggressive buyers over the past week. This indicates that despite the price fluctuations and selling pressure, consistent accumulation by buyers is occurring, hinting at a deeper, perhaps long-term, conviction in TAO's value.
