The crypto AI sector tokens showed a relatively bullish performance over the past month. CoinMarketCap data showed that this sector’s market cap has grown from $12.76 billion to $14.42 billion in 30 days.
The performance was particularly noticeable in mid-February.
At that time, TAO rallied nearly 50% within five days, but was unable to keep hold of the gains. Its fortunes have turned since then, at least in the short-term.
TAO speculators expect continued losses
Source: Coinalyze
Coinalyze data revealed an Open Interest increase of 6% in the past 24 hours.
Most of these gains came when Bittensor [TAO] rallied toward $200 on Saturday, the 7th of March. This rally was not backed by sustained demand.
The Spot CVD has been in decline over the past week, and the Funding Rate was predominantly negative in March. Together, they highlighted the lack of demand and the overall short-term bearish market sentiment.
Source: TAO/USDT on TradingView
On top of the short-term bearishness, TAO has been trading within a range since mid-February. This range reached from $165 to $200.
At the time of writing, the momentum was bearish, and the OBV had slipped below a local support to indicate heightened selling pressure.
Combined with the Bitcoin [BTC] slide back below $70k, it is expected that TAO is headed toward the $165 range lows next.
Traders’ call to action- Use the range
Source: CoinGlass
The past month’s liquidation heatmap highlighted the range extremes as being the most obvious magnetic zones near the price. The $160 and $200 areas were places where trades can look to buy and sell, respectively.
It is true that the TAO longer-term trend is bearish. However, traders might benefit from trading the range until it breaks.
Final Summary
- The attempted TAO rally to $200 on Saturday was quickly thwarted, and $165 seemed to be the next target.
- The negative funding rates and falling spot CVD highlighted short-term bearishness.
