Bittensor’s TAO token slipped below the $250 mark on Thursday, recording its fourth consecutive day of losses as weakening retail interest and deteriorating market sentiment weigh on the AI-focused cryptocurrency.
At the time of writing, TAO remains under pressure, with derivatives data showing a notable decline in trading activity and investor appetite.
The token is now approaching a critical support zone that could determine whether prices remain above $200.
Open Interest drops as traders pull back
Bittensor is experiencing a decline in speculative demand, reflected in a sharp drop in futures market activity.
According to CoinGlass data, TAO futures open interest (OI) fell more than 6% over the last 24 hours to approximately $252.08 million, signaling a reduction in the total value of active contracts.
The decline suggests traders are closing positions rather than adding fresh exposure, highlighting a more cautious market environment.
Risk-off sentiment has intensified across the TAO market.
Over the past 24 hours, total liquidations reached roughly $1.67 million, with bullish positions accounting for about $1.48 million of the wipeout.
Additional signs of weakening participation include the funding rates declining to 0.0018%, reduced demand for leveraged long positions, and the trading volume dropping by 14%.
Bittensor price outlook: TAO slides below key moving averages
The TAO/USD 4-hour chart is bearish and efficient as the coin has lost 6% of its value in the last 24 hours.
From a technical perspective, Bittensor remains under pressure after failing to sustain last week’s recovery attempt.
The token is currently trading below both the 50-day EMA near $251 and the 200-day EMA near $265.
TAO has been trending lower since hitting resistance near $290.
Despite recent weakness, TAO remains above the 20-day Simple Moving Average (SMA), currently located around $231.
This level also serves as a key technical support area. A decisive breakdown below $231 could trigger a deeper correction toward the $196 support level.
Technical indicators suggest the recent rally may have been a temporary rebound rather than the beginning of a sustained uptrend.
The Relative Strength Index (RSI) is hovering below the neutral 50 level, indicating a growing bearish momentum.
The Moving Average Convergence Divergence (MACD) histogram remains in positive territory but continues to contract, suggesting that bullish momentum is gradually weakening.
This combination reinforces the view that last week’s advance was corrective.
For TAO to regain upward momentum, buyers will need to push the token above key resistance levels.
The first major resistance level at $278 could pave the way for the bulls to target the $281 zone in the near term.
The $231 support zone now stands as the most important level for bulls to defend.
A break below it could expose TAO to a deeper decline toward $200 and below, while a recovery above $278–$281 would be needed to revive the bullish outlook.
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