TAO's 165 Dollar Support Level Becomes Critical, Market Cap Exceeds 14.4 Billion Dollars

The crypto AI sector has recently experienced a significant valuation momentum. Over the past 30 days, the sector’s total market capitalization increased from $12.76 billion to $14.42 billion, showing strong growth. Notably, the demand surge in mid-February was remarkable. However, the most prominent project during this period, Bittensor (TAO), has recently been trading below the $165 level.

Why Can’t Bittensor’s Recent Rise Continue? - Technical Indicators Signal Caution

Looking at Coinalyze data, open position data presents an important warning. Although open interest increased by about 6% in the last 24 hours, these gains were short-lived. TAO’s rise near $200 on March 7 triggered rapid buying by speculative traders. However, this momentum did not sustain.

Recent market structure indicates increasing difficulties for Bittensor. Spot CVD (Cumulative Volume Delta) data shows selling pressure has not eased, and funding rates have mostly remained negative in March. These two indicators together suggest insufficient local demand and that price movements are largely speculative. TAO/USDT charts show it has been confined within a certain range since mid-February.

Why Is the $165 Level Important? - Support Analysis

From a technical analysis perspective, the $165 level is a critical support point for Bittensor. Examining past price movements, TAO has been confined between $165 and $200 for an extended period. This range represents an important decision point for traders and institutional players.

The OBV (On Balance Volume) indicator has recently fallen below local support levels, signaling increased selling pressure. With Bitcoin dropping below $70,000, it is expected that TAO could fall toward the $165 level. This level has the potential to be a significant breakout point both technically and psychologically.

Trader Strategies - Trading Within the Price Range

CoinGlass’s liquidation heatmap shows concentrated liquid positions around the $160 and $200 zones. This indicates that the price will encounter significant resistance and support at these levels. Although the long-term trend remains bearish, traders can develop strategies within this range until the $165 support level is broken.

If the $165 support holds, a new resistance may form at $200. Conversely, if this support level is broken, TAO is likely to test lower levels. Current market dynamics and volatility suggest that active trading around the $165 region is feasible.

Final Summary

• The $165 support level is critical, and its breach could lead to sharper declines.
• Negative funding rates and declining spot CVD indicate ongoing short-term selling pressure.
• Technical indicators emphasize that traders operating within this range should consider the $200 resistance and $165 support levels as key reference points.

Disclaimer: The information provided does not constitute financial, investment, trading, or other advice and reflects only the author’s analytical opinion.