TAO latest news: Bittensor completes first supply halving but downside pressure continues for TAO

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Bittensor slides 7.44% today to $266.20

Highlights

Bittensor has executed its first supply halving, reducing daily TAO issuance from 7,200 to 3,600 tokens in line with its anti-inflationary framework.
The halving event drew visible interest from both the decentralized AI community and institutional players, including mentions from crypto funds and Grayscale.
Bittensor's market capitalization exceeded $2.7 billion with notable trading activity surrounding the halving, although some regulatory uncertainties persist.

Halving-driven token supply cut draws institutional interest amid uncertainty

Bittensor has completed its first supply halving, reducing daily TAO issuance from 7,200 to 3,600 tokens as part of its anti-inflationary framework modeled after Bitcoin. This halving milestone brought increased attention to the project from both the decentralized AI community and institutional participants, with mentions by crypto fund managers and firms like Grayscale. Bittensor has reported a market capitalization above $2.7 billion and notable trading activity surrounding the halving event. Some regulatory uncertainties remain, but the completion of the first halving is a key development in the network's token economics.

Persisting bearish momentum as oversold signals clash with volatility

Bearish momentum persists for TAO as it continues to trade below the MA-20 ($288.63), MA-50 ($337.89), and MA-200 ($355.19), with Ichimoku Kijun resistance at $293.80 and support near intraday lows. Both daily and weekly MACD indicate strong selling conditions, while the ADX highlights a lack of clear trend direction. The daily RSI at 38.87 and CCI at -127.45 point to oversold territory, confirmed by the Stoch RSI, but a BBP reading of 1.22 signals buyer strength, creating divergence among oscillators. The Awesome Oscillator is neutral, and a gap down from $287.60 to $269.50 marked the session open, with high volatility driving the price further down.

Bearish scenario favored as upside probability remains limited in near term

TAO is expected to trade between $240.00 and $290.00 over the next five sessions, a volatility band relative to current levels. Given ongoing momentum and technical signals, the chance of an upward move is below 20%, making further declines more likely. The baseline scenario sees consolidation within this corridor, but a recovery above $293.80 could lead to a test of $300.00, while a break below $263.00 opens the path toward $240.00.

Viktoras Karapetjanc, analyst at Traders Union, sees the recent TAO halving as a critical milestone for Bittensor's long-term fundamentals. He notes strong institutional attention and robust trading activity, even as short-term momentum remains negative. While technical indicators signal oversold conditions, Karapetjanc believes the anti-inflationary framework positions the project well for future recovery. "Despite short-term pressure, I see TAO’s fundamentals and institutional interest supporting a constructive outlook over the next cycle."

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.