Bittensor (TAO) has entered a notable bearish streak, slipping for the fourth consecutive day and dropping 5.25% to trade at $174.2 at the time of writing. This decline comes alongside a sharp 15% increase in trading volume, which surged to $117.50 million, signaling active market engagement even as prices fall. The combination of higher volume and declining price reflects growing selling pressure, suggesting that TAO could continue to face downward momentum in the short term. Analysts are now closely watching the $159 support level, which may act as the next critical point for the altcoin.
Technical indicators and historical chart patterns provide a cautious outlook. TAO has struggled to reclaim the $207 level, which it initially broke below on January 31, 2026, and recent attempts to climb above it have been unsuccessful. The latest price reversal aligns with the 0.618 Golden Fibonacci level, a key technical threshold, indicating that bearish forces remain influential. If TAO continues to hold below these critical levels, the altcoin could see an additional 18% decline, potentially reaching the $144 liquidity zone. The Average Directional Index (ADX) currently reads 33.62, confirming strong directional momentum that favors the prevailing downtrend.
Market sentiment appears mixed despite the bearish price action. Derivatives data from Coinglass shows traders over-leveraged at $170.8 on the downside and $181.3 on the upside, with $2.65 million in short positions outweighing $1.89 million in longs. This suggests a market skewed toward bearish bets. Conversely, spot market data from CryptoQuant reveals that buyers have been consistently absorbing selling pressure over the past week, as indicated by the 90-day Spot Taker Cumulative Volume Delta. This ongoing buyer activity could provide temporary support, highlighting the tug-of-war between short-term traders and longer-term holders.
From a broader perspective, TAO’s current performance underscores the volatility typical of altcoins navigating complex market cycles. Investors should monitor key support and resistance levels closely, as a failure to reclaim $207 may trigger further downside, while renewed buying pressure could stabilize the token above current lows. For now, the prevailing trend points to continued caution, but market dynamics suggest opportunities for informed traders who track volume, leverage, and technical signals closely. The coming days will be critical in determining whether Bittensor can weather the bearish phase or if the $144 mark becomes its next significant test.
