The crypto market is facing tough times, and
What’s Happening to Top ?
Let’s break it down by coin:
- Bittensor (TAO): Down almost 3% today, trading at $158. It’s far below key levels.
- Internet Computer (ICP): Dropped nearly 7% in 24 hours and 20% over the week.
- Near Protocol (NEAR): Down 6% today and 17% in seven days, now at $1.01.
This isn’t just a small dip. It’s part of a bigger risk-off mood in crypto. Investors are pulling back, selling off risky assets like these AI-focused tokens.
Bearish Signals in Bittensor’s Market
Bittensor leads the AI coin pack, but its futures market shows worry. Open Interest (OI) dropped to $106 million on Monday—the lowest since September 2024. That’s down from $111 million just a day before.
What does OI mean? It measures the total value of open futures contracts. When OI falls, it means traders are closing positions instead of opening new ones. They don’t trust TAO to go up soon. Back in early November, OI hit $418 million when TAO was at $539. Now, at $158, confidence is low.
Lower OI also means less liquidity. It’s like investors leaving the party early, which fuels more selling.
Technical Analysis: A Bearish Picture for TAO
TAO sits well below its moving averages:
- 50-day EMA: $232
- 100-day EMA: $264
- 200-day EMA: $299
All these lines slope down, pointing to a downtrend. The MACD indicator is below its signal line, but red bars are shrinking. This hints bearish pressure might ease a bit.
A close above the 50-day EMA could push toward the 100-day EMA. But a descending trendline from $539 caps gains at $218. RSI is at 28—deeply oversold. This could mean a short bounce soon.
Watch out: If it fails to break $218, TAO might drop 11% to $142, a recent low.
Funding Rates and Sentiment
Funding rates tell us about trader mood. Positive rates mean bulls expect prices to rise. Negative rates signal bears think prices will fall.
For AI coins like TAO, negative funding points to bearish bets. Traders are paying to bet against the uptrend, raising liquidation risks and adding pressure.
Why the Broader ?
- Risk-Off Sentiment: The whole crypto market is cautious. Bitcoin hovers near $70,000 after a 9% weekly drop. Spot ETFs saw $318 million outflows—third week in a row.
- Low Retail Demand: Everyday investors are sidelined. Ethereum holds $2,000 barely, with falling OI too.
- AI Hype Fading: AI coins surged on buzz earlier this year. Now, real progress is slow, and profits are taken.
- Macro Pressures: Higher interest rates and stock market wobbles spill into crypto.
Other coins like Ripple (XRP) at $1.40 and PI Network also slide, showing it’s not just AI.
Can Bounce Back?
Short-term, oversold RSI on TAO suggests a pause. A break above $218 could shift momentum. For ICP and NEAR, watch key supports: ICP at recent lows, NEAR near $1.
Long-term, AI-blockchain mix has huge potential. Bittensor decentralizes AI models. ICP aims for web-speed smart contracts. NEAR scales fast for dApps.
But recovery needs:
- Bitcoin stabilizing above $70k.
- Rising OI and positive funding.
- Fresh AI news or partnerships.
What Should Traders Do?
Caution first. Avoid FOMO buys in this downtrend. Set stops below $142 for TAO longs. Wait for EMA breaks before going bullish.
Diversify. Don’t bet all on AI coins now. Track BTC— it leads the market.
| Coin | Current Price | 24h Change | Key Support |
|---|---|---|---|
| TAO | $158 | -3% | $142 |
| ICP | Recent low | -7% | Check chart |
| NEAR | $1.01 | -6% | $0.90 |
Final Thoughts on the
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What’s your take? Will AI coins rebound soon? Share in comments.
Markets move fast—always DYOR and manage risk.
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