Bittensor’s TAO Faces Risk of 40% Pullback, Technical Indicators Show

Bittensor is a decentralized network that uses the TAO token to incentivize AI models and computing resources. Its token price is often influenced by enthusiasm for AI and broader market risk appetite. TAO has gained 160% in just over a month, but technical indicators suggest the rally may be overheating and volatility risks are rising.

The latest daily chart shows TAO forming another golden cross. Fractal data indicate that previous occurrences of the signal were often followed by steep corrections. If the historical pattern repeats, TAO could fall about 40% over the next five to six weeks. With the RSI remaining in overbought territory for an extended period, short-term profit-taking and pullback pressure are also increasing.