TAO : Drop or bounce?? ๐
โIf you saw the Bittensor chart
$TAO today, you surely noticed a strong drop (almost 20%).
๐ตโ๐ซDon't panic, here I explain what happened and why there is hope for it to rise.
โ๐ Why did it drop?
โBasically, a very large player (Covenant AI) decided to exit the project and suddenly sold about 37,000 tokens. That scared the market and caused a chain reaction, dropping the price to the $265 USD zone.
โ๐ 3 Reasons to be optimistic:
๐ชโStill the leader: Bittensor is the most important Artificial Intelligence project in crypto. The project has not failed, there was just a one-time massive sell-off.
๐ชโInterest from "the big players": There are giant companies (like Grayscale) interested in creating investment funds (ETFs) for
$TAO . This usually brings a lot of new money into the ecosystem.
๐ชโ"Supply" zone: Technically, the price reached a point where historically buyers tend to appear. If it holds above $250, the bounce could be quick.
๐๐ปโโ๏ธ My opinion:
โWe are seeing a "cleaning" of the market. For those looking to enter long-term in AI, these "supply" prices are the ones you don't see every day.
โWhat to watch for?
***โIf the price rises above $310 again, it is very likely that the drop has ended and it will seek new highs.
โ*** Bitcoin is eager to rise to $80,000, and when the leader rises, solid projects like TAO tend to keep pace.
#TAO #AI