- The token dropped 7% as open interest and spot demand weakened.
- Bulls must reclaim $291.6 and $300 to strengthen the recovery outlook.
- A dip toward $190 could attract buyers seeking another bullish reaction.
Bittensor — TAO, has suffered a sharp pullback after showing strong momentum earlier this month. The token dropped nearly 7% within 24 hours. TAO has also posted losses each day since Monday, September 7. Open interest fell 14.3% during the same period. Spot CVD also continued declining, signaling weaker market demand. The recent weakness follows TAO’s rise toward $277. Traders now wonder whether buyers can regain control soon.
Bittensor Faces Weak Demand After Recent Rally
TAO reached a three-month high near $277 after launching on Raydium. The move gave bulls fresh confidence after months of challenging price action. However, recent selling has quickly erased part of those gains. Coinalyze data shows open interest dropped 14.3% within 24 hours. Spot CVD has also declined steadily since Monday. Together, these indicators point toward weaker spot and derivatives demand.
The falling demand creates a difficult setup for short-term bulls. Continued weakness could give TAO five straight daily losses. Such a streak would signal stronger selling pressure across the market. TAO also faces a major technical hurdle near $291.6. That level marked a previous high from June. A move above $291.6 could support another short-term advance. The psychological $300 level presents another challenge for buyers.
Strong demand must push through both resistance zones before momentum improves. Without stronger buying pressure, sellers could maintain control around current levels. The weekly chart also shows a broader bearish structure. A swing low near $167.8 formed during April 2025. A February 2026 weekly close below that level confirmed bearish market structure.
Could $190 Offer the Next Opportunity?
The weekly RSI currently sits near 49, showing neutral momentum. RSI neutrality leaves room for both buyers and sellers to gain control. However, the OBV has followed a steady downtrend since October. The declining OBV points toward persistent weakness in underlying buying pressure. TAO therefore needs stronger volume before bulls can claim a trend reversal.
A break above $291.6 would provide an important bullish signal. Buyers could then target the psychological $300 resistance level. Clearing $300 would improve the short-term outlook considerably. The $377.8 swing point remains the major bullish threshold. A break above that level would confirm a stronger weekly recovery. Until then, TAO remains vulnerable to additional selling pressure.
Bitcoin’s next move could also influence TAO’s short-term direction. Another BTC decline could limit demand for higher-risk altcoins. TAO may struggle to regain momentum without broader market support. For traders seeking a lower-risk entry, $190 remains an important level. A dip toward $190 could attract buyers after the recent pullback. Traders may then watch for renewed demand before entering bullish positions.
