Bittensor’s TAO token recently ranked seventh among the market’s top trending tokens according to CoinGecko, yet its price fell over 2% in the last 24 hours with daily volume reaching $90 million. Liquidity data shows heavier clusters between $220 and $255, while downside liquidity has shifted from $185–$190 to $168–$175. The altcoin appears to be forming a base above $180–$185 on the 4-hour chart, a level that previously triggered a 59% rally in early June. However, falling Open Interest, now flat at $127 million, suggests limited buying power. TAO’s correlation with Bitcoin has risen to 0.89, making a BTC resurgence a potential catalyst.
Bittensor’s TAO token entered the trending tokens list at position seven, according to CoinGecko, alongside tokens like DeXe and Pudgy Penguins. Despite the listing, TAO lost more than 2% of its value over the past day, with daily volume declining to $90 million.
Real-time transaction volume on the network increased, with the last 200 transactions each trading more than 100 TAO tokens. However, liquidity patterns appear to be shaping TAO’s next move more than on-chain activity.
Liquidity clusters are heavily stacked between $220 and $255, while the nearest downside cluster was between $185 and $190. Many short positions in that range have since closed, with concentration now between $195 and $205.
Below $185–$190, clusters are losing relevance as larger long liquidations occur and migrate liquidity lower. Current liquidity sits between $168 and $175, with more weight around $160–$165.
As long as TAO remains below $205, the altcoin remains vulnerable to further decline. Losing $185 would expose the price to $168–$175 or the lower target near $160.
On the 4-hour chart, TAO appears to be forming a base above the $180–$185 zone. Historical performance shows that level held strong in early June and triggered a 59% upside rally.
Open Interest has been falling but flattened at around $127 million, hinting at a lack of sufficient buying power for a similar move. A resurgence in Bitcoin’s price would benefit TAO, especially since their correlation coefficient has risen to 0.89. Without that, TAO remains more likely to break lower than to rebound.
