I just added to my position in this asset, so my exposure is larger than before.
$TAO dropped pretty sharply this time—down five percent in an hour and fifteen percent in a day. Long positions were liquidated in waves, and liquidations worth hundreds of thousands of dollars suggest it was mainly leverage getting squeezed out, not a sudden loss of faith in the project.
Looking at the price action, it has retreated to around the 180 mark, giving back most of the gains from the previous rally. In the short term, it’s in a weak zone after the panic-driven sell-off. This kind of drop often flushes out weak hands and positions opened near the highs, but until the trend recovers, any bounce looks more like an oversold rebound. We’ll need to see whether it can reclaim the 180 level and hold above it; if it can’t, there’s room for another leg down. Overall, risk appetite across the market has also been mediocre these past couple of days, so it’s not a good time to rush into a one-sided bet.
The project’s narrative is built around “decentralized AI training,” making it one of the few projects in this AI-meets-crypto cycle with a real network up and running. The story hasn’t stopped working, but the market has moved from the broad-rally phase of “buy the concept” to a phase where projects have to “show real demand.” Capital is still interested, but investors have become much more selective, which has also amplified price swings.
This sharp drop flushed out leverage, but the story hasn’t broken—the timing has. Now the question is whether the 180 mark can turn into support rather than a ceiling for a rebound.
$TAO dropped pretty sharply this time—down five percent in an hour and fifteen percent in a day. Long positions were liquidated in waves, and liquidations worth hundreds of thousands of dollars suggest it was mainly leverage getting squeezed out, not a sudden loss of faith in the project.
Looking at the price action, it has retreated to around the 180 mark, giving back most of the gains from the previous rally. In the short term, it’s in a weak zone after the panic-driven sell-off. This kind of drop often flushes out weak hands and positions opened near the highs, but until the trend recovers, any bounce looks more like an oversold rebound. We’ll need to see whether it can reclaim the 180 level and hold above it; if it can’t, there’s room for another leg down. Overall, risk appetite across the market has also been mediocre these past couple of days, so it’s not a good time to rush into a one-sided bet.
The project’s narrative is built around “decentralized AI training,” making it one of the few projects in this AI-meets-crypto cycle with a real network up and running. The story hasn’t stopped working, but the market has moved from the broad-rally phase of “buy the concept” to a phase where projects have to “show real demand.” Capital is still interested, but investors have become much more selective, which has also amplified price swings.
This sharp drop flushed out leverage, but the story hasn’t broken—the timing has. Now the question is whether the 180 mark can turn into support rather than a ceiling for a rebound.
