Bittensor hits 5-day bearish run – Will THIS TAO zone hold?

Bittensor’s TAO token extended its bearish run as selling pressure intensified for a fifth straight session.

The decline followed a failed retest of the $310 supply zone on the 10th of January, which triggered sustained short positioning.

That area had capped prior recovery attempts and remained a key reference point for near-term price behavior.

For bullish momentum to regain credibility, TAO buyers would need to invalidate that zone decisively.

At press time, TAO traded near $251 after posting a sharp daily decline, marking its weakest level since listing on Coinbase in late October.

The move reflected fading upside momentum. Repeated stabilization attempts over recent sessions failed to attract follow-through buying. Sellers retained control as price drifted lower across the daily timeframe.

Source: TradingView

Supply zone retest highlights growing pressure

For traders, the recent interaction with the $310 region placed Bittensor [TAO] at a technically sensitive level.

Moreover, price approached that zone while forming successive lower highs. It signaled persistent distribution rather than short-term volatility.

The retest occurred without a meaningful pickup in bullish participation, keeping downside risks in focus. That weakness left the price vulnerable as the market structure continued to tilt lower.

Network metrics reflect fading engagement

Beyond price action, network metrics softened notably during the drawdown. Development Activity dropped to its lowest observed level for TAO, pointing to reduced ecosystem momentum.

Historically, sustained declines in Development Activity often aligned with cooling investor interest during extended downtrends.

Source: Santiment

On top of that, social metrics weakened alongside price.

Santiment data showed TAO recorded roughly 30 social mentions over the past 24 hours, reflecting fading speculative attention.

Lower Social Volume mirrored shrinking demand and limited participation from retail traders.

Source: Santiment

TAO market sentiment remains cautious

Taken together, declining price action, subdued Development Activity, and weaker social presence kept sentiment cautious.

On-chain signals suggested traders remained reluctant to step in aggressively near current levels. That alignment left near-term conviction fragile as participants watched for signs of stabilization.

With TAO holding below the $310 supply zone and engagement metrics muted, selling pressure remained the dominant force.

Final Thoughts

• Rejection near $310 aligned with lower highs and weak follow-through buying, reinforcing downside structure.
• Falling Development Activity and roughly 30 daily social mentions pointed to thinning participation, limiting dip-buying interest.