Bittensor [TAO] experienced a significant drawdown over the past 24 hours, declining nearly 7% and posting losses each day since September 7. The decline came after the altcoin had reached a 3-month high of $277 following its listing on Raydium.
Market metrics reflected the weakness. Open Interest dropped 14.3% in 24 hours, while spot CVD has fallen since September 7, indicating reduced demand in both spot and derivatives markets.
Technical analysis shows bearish structure
On the weekly timeframe, Bittensor's price structure remains bearish despite the recent rally from below $200. The $291.6 level from June continues to act as resistance, positioned just below the $300 psychological support zone.
The RSI on the weekly chart registered neutral momentum at 49, but the OBV has been in steady downtrend since October, reflecting bear market conditions. Key support levels to watch include $142.8 and $377.8 swing points.
Path forward dependent on sustained demand
For a bullish recovery to gain traction, Bittensor would need to break through the $377.8 swing point. The $300 level represents a critical supply zone that bulls have been unable to decisively hold.
A breakthrough of these resistance levels would require aggressive and sustained buying pressure. However, this demand may remain constrained if Bitcoin faces additional price weakness after failing to hold recent levels.
