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Bittensor's TAO Token Faces Major Correction Amidst AI Competition
#Bittensor #AiCrypto #AI #TAO
Between October 2023 and March 2024, Bittensor's TAO token performed exceptionally well, fueled by strong AI-related fundamentals, outpacing Bitcoin.
Major Correction Phase
Since Q2 2024, TAO has experienced a significant correction, dropping about 70% from its all-time high on April 11, 2024. Currently ranked 54th among cryptocurrencies with a market cap of $1.9 billion, TAO's investor appeal has waned.
Technical Analysis
TAO is now in a medium/long-term accumulation zone, with potential consolidation between the 0.618 ($300) and 0.786 ($200) Fibonacci retracement levels. Key technical levels include:
Confluence zone between 0.618 Fibonacci and the 7-week moving average (red).Confluence zone between 0.786 Fibonacci and the January 2024 lows (green).
To regain positive momentum, TAO must break above $400. A close below January 2024 lows would signal a bearish trend.
Competitive Pressure
TAO faces strong competition within the AI crypto sector. Established AI projects Singularity, Fetch.ai, and Ocean Protocol announced a merger in March 2024, creating a new token, ASI, which has impacted Bittensor's price.
Conclusion
Bittensor's TAO token is facing challenges and fierce competition, with its relative strength in the ecosystem diminished. Despite this, TAO remains in an upward long-term trend and within a rational accumulation zone. Investors should wait for stronger signals before committing capital.
