Bittensor (TAO) price just dropped below a key support level, and that’s got people in the AI crypto space paying attention. The price slipped under the $346 zone and is now trading below its 50-day EMA, a signal that has traders watching closely. Some are wondering if this is just a dip before a bounce, or the start of a bigger drop. And since TAO often leads the way for other AI tokens, the rest of the sector could feel the effects too.
On X, top analyst Dark Horseman weighed in, calling this move a bearish turn for now. While we haven’t seen the major rally some were hoping for yet, the tweet points out that OpenTensor, the project behind Bittensor (TAO), is still a big force in the AI blockchain world.
The author also noted that TAO tends to move ahead of other AI coins, meaning this drop could be an early signal for the broader trend. Even though the StochRSI is oversold (which sometimes hints at a bounce), the post suggests that slipping below $346 was expected, and what happens next could shape short-term sentiment across the space.
Bittensor Price Technical Breakdown Below Support Zone
TAO daily chart reveals a clear drop below the flipped support-resistance zone near $346, where the token had previously consolidated. The price has also moved beneath the 50-day exponential moving average, weakening the structure that supported bullish momentum through April and May.
The volume profile shows that a large share of trading activity occurred between $350 and $370. With Bittensor price now below this band, the chart suggests lower liquidity, which may accelerate downside movement if buyers do not return soon. Traders are watching the $278 level for immediate support, which previously served as a consolidation base in Q1.
Indicators Point to a Weak Structure For Bittensor Price
The breakdown comes after TAO price had previously broken out of a descending trendline, which sparked optimism in April. However, failure to maintain levels above key moving averages has brought that momentum into question.
Stochastic RSI data now shows oversold conditions. This may support a temporary recovery, but no confirmation has emerged yet. Traders are expected to wait for either a reclaim of former support or a confirmed bounce before reassessing upside potential.
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Moreover, TAO remains a central figure in the AI token space. The latest tweet from Dark Horseman reflects a wider view held by some market watchers that TAO movements often influence price action in other AI-related tokens.
OpenTensor continues to lead in terms of developer focus and narrative strength in the sector. While the current technical picture leans bearish, any short-term rebound in TAO price could once again trigger momentum in other projects within the same category.
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