Bittensor: weak trend and downside risks led to a 7.74% drop in price prediction

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Bittensor slides 7.74% today

Highlights

Bittensor's network will undergo its first halving event on December 10, cutting TAO token emissions by 50% after reaching 10.5 million tokens mined.
The halving marks a major milestone in Bittensor's development as it advances its decentralized AI and machine learning protocol ambitions.
TAO trading volumes and investor interest are increasing amid broader momentum in the decentralized infrastructure sector.

Halving event spurs investor interest as trading volume surges

Bittensor is attracting notable attention as its network approaches the first halving event on December 10, which will reduce TAO token emissions by 50% once 10.5 million tokens have been mined from the 21 million total supply. This milestone is significant for the protocol, supporting its decentralized AI and machine learning ambitions. Heightened trading volumes and growing investor interest are visible as the broader decentralized infrastructure sector gains momentum.

Technical resistance and weak signals reinforce downward bias

TAO continues to face resistance at the Ichimoku Kijun level of $326.60, with short-term support forming near $285.50. Momentum indicators reinforce this cautious outlook: the MACD is in Strong Sell mode, the ADX shows a weak trend at 19.55, and RSI at 42.58 signals a lack of clear direction. CCI and the Awesome Oscillator are neutral, while BBP confirms dominant seller presence and Stoch RSI indicates a potential overbought pause, resulting in mixed signals overall.

Limited upside expected as volatility and selling pressure persist

Over the next five days, the typical volatility band for TAO is expected between $255.00 and $295.00. Given the dominant negative momentum and weak trend indicators, the probability of sustained upside is very low (under 20%), while further downside or range-bound trading above $255.00 appears more likely. A bullish scenario would require a break above $295.00 and the Kijun resistance for any further recovery. On the downside, a drop below $255.00 could open the door to accelerated losses if selling momentum continues.

Viktoras Karapetjanc, expert at Traders Union, sees Bittensor at a pivotal point with the upcoming halving drawing strong attention from investors. Despite the current technical weakness, he notes growing sentiment and sector momentum that could support a recovery if resistance breaks. The analyst believes range-bound volatility is likely short term, but the fundamental interest in decentralized AI infrastructure brings longer-term promise. "If TAO stays above $255.00 and sentiment holds, I see a real chance for bullish momentum to rebuild as the halving narrative develops."

Last time, analysts noted that Bittensor traded above its 20-day moving average but remained below its 50- and 200-day trend lines, highlighting strong short-term momentum alongside ongoing medium- and long-term downside pressure. While the daily MACD signaled selling activity and momentum indicators like the RSI and CCI pointed to mild oversold conditions, heightened intraday volatility and persistent strength toward session highs were observed as technical signals remained mixed.

Source of Data: TAO Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.