The TAO token from the Bittensor ecosystem faces significant selling pressure after a major network participant announced its departure. Covenant AI, one of Bittensor’s top subnet operators, has exited the project, accusing it of centralization. This public accusation coincided with TAO’s price dropping 30% from its weekly high. Fractal analysis of past price action had previously signaled deeper downside targets for the token, which some analysts now suggest could extend to a 45% decline in the coming weeks.
The price of Bittensor’s TAO token fell sharply following a public exit by a key network contributor. It has declined 30% from its recent weekly high, confirming earlier technical patterns that projected further downside.
This sell-off was triggered after Covenant AI, a prominent subnet operator, announced its complete withdrawal from the ecosystem. The company cited concerns over the project’s governance, accusing Bittensor of engaging in “decentralization theater.”
The accusation of centralization from an internal operator has sparked debate about the network’s structure. The resulting price action has validated historical fractal setups that had foreseen lower price levels for the token.
Some market observers point to these technical patterns, which previously identified bearish targets, as a guide for potential future movement. These analyses, noted before the recent downturn, suggest the token could be at risk for an additional drop of up to 45%.
