What triggered Bittensor's latest price pullback

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Bittensor slides 10.31% to $226.3 today

Highlights

Bittensor executed its first protocol halving, reducing daily TAO issuance from 7,200 to 3,600 and shifting token supply dynamics.
Over 70% of TAO's 10.97 million circulating supply remains staked, and a regulated staked TAO ETP was listed on Euronext Paris.
TAO/USD trades below major moving averages with all technical indicators signaling continued bearish momentum and a likely range of $195–$273.

Token issuance halving and ETP launch met with continued selling

Bittensor recently completed its first protocol halving, reducing daily TAO issuance from 7,200 to 3,600 and altering the project’s token supply dynamics. The network reported a self-reported market capitalization of approximately $2.76 billion and a circulating supply of about 10.97 million TAO, with over 70% of tokens staked on the network. A regulated Bittensor Staked TAO ETP was launched on Euronext Paris by Deutsche Digital Assets and Safello, allowing investors access to TAO with staking rewards, though price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, highlights that Bittensor (TAO) displays pronounced technical weakness with the price substantially below all key moving averages. He points out the lack of nearby support as a risk, and sees the recent halving and ETP listing as failing to stabilize sentiment. Kharitonov notes over 70% token staking has not managed to offset ongoing selling pressure. He warns that any slip below $224 risks an accelerated drop toward the $200 mark. "Given the entrenched downside momentum and poor technicals, I remain skeptical of any short-term recovery unless broader demand decisively shifts," he says.

Viktoras Karapetjanc, expert at Traders Union, believes the recent protocol halving and launch of a regulated Staked TAO ETP set a positive structural foundation. He sees strong institutional interest and high staking rates as signals of deep commitment and long-term potential. Karapetjanc notes that, despite short-term price pressure, Bittensor's tokenomics are now more attractive to strategic investors. "With adoption catalysts in place and supply growth halved, I expect renewed interest to drive further growth when sentiment improves," he says.

Parshwa Turakhiya, analyst, observes that TAO is stuck in a defined volatility corridor and sentiment remains fragile after the halving event. He identifies an immediate trading range of $195.40 to $272.65, with dynamic resistance at $288.80 likely capping quick rebounds. Turakhiya advises monitoring for a potential breakout from this sideways phase, with risk skewed to the downside. "Short-term setups favor nimble strategies — traders should watch for momentum shifts on any sudden volume spikes," he says.

Technical boundaries weaken amid broad-based seller dominance

TAO/USD is trading well below its 20-day, 50-day, and 200-day moving averages, which stand at $270.52, $270.02, and $254.52 respectively, indicating sustained pressure from sellers across short-, medium-, and long-term timeframes. Dynamic resistance is defined by the Ichimoku Kijun at $288.80, while there is no nearby support from moving averages given the current price displacement.

Earlier, analysts noted that Bittensor was exhibiting persistent bearish momentum despite efforts to broaden investor access through a regulated ETP. The current action reinforces this negative outlook, with downside risk escalating further as the recent halving and ongoing selling leave TAO vulnerable to a sharp move lower if $224 is breached.

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

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