The crypto AI sector has seen a sharp 30% decline over the past month, dropping to a $14.66 billion market cap. However, a rebound began on February 12th, led by a 31% surge in Bittensor [TAO]. Other tokens like Render [RENDER] and NEAR Protocol [NEAR] also posted gains, potentially signaling a shift in market narrative.
The cryptocurrency AI sector has faced significant pressure recently. Over the last month, its total market capitalization fell by 30.28% to $14.66 billion.
This trend showed signs of reversal starting Thursday, February 12th. During this uptick, Bittensor [TAO] rallied by 30.93%, while Render [RENDER] and NEAR Protocol [NEAR] gained 18% and 15% respectively from their Thursday lows. The slight slump in Bitcoin [BTC] dominance in February may have contributed to this capital rotation into altcoins.
On a 1-day timeframe, TAO’s swing structure remained bearish despite the recent bounce. The Moving Average Convergence Divergence (MACD) and moving averages captured the ongoing bearish momentum, though short-term upward movement was noted.
The On-Balance Volume (OBV) also saw a bounce but stayed within a longer-term downtrend. To flip the daily structure bullish, TAO would need a daily close above January’s high of $302.4, which appeared unlikely given wider market sentiment.
Analysis of the 4-hour chart showed the local supply at $202 had been swept. This revealed sizeable price imbalances around the $170 level, which also aligned with key moving averages.
Therefore, TAO could potentially drop to fill this $165-$175 imbalance before climbing toward projected targets at $241.4 and $268.2. The AI sector has shown strength over the past four days but has been in a longer-term downtrend.
