- 1 Bittensor (TAO) faced a security breach and tumbled over 12% overnight.
- 2 Around $8 Million worth of TAO was stolen in this hack.
The decentralized Artificial Intelligence platform Bittensor (TAO) abruptly stopped operations, probably due to a security attack on users’ wallets. This suspicious activity triggered an over 12% drop in price in the last 24 hours.
TAO was trading in a consistent downtrend, revealing a major decline in the past few weeks. It traded close to its 52-week low mark of $240 and was under pressure.
Until the token does not retain the $270 mark, the selloff might continue, leading to further decline.
At press time, Bittensor token traded at $240.90, with an intraday decline of 11.36%, reflecting bearishness on the chart. It has a monthly return ratio of -360% and -43.49% yearly, reflecting a downtrend.
The pair of TAO /BTC was at 0.0000308 BTC, and the market cap was $121.59 Million. Analysts are neutral and suggest that the TAO price may continue to lose gains and would retest the $200 mark ahead.
Could TAO Resist the Selloff at Around $240?
According to Watchmaker, a moderator on Bittensor’s Discord, the blockchain will run safely for 24 hours.
TAO was trading in a downtrend, below the key moving averages, signifying the seller dominance.
Tao Price Volume Chart | Source: Santiment
Amidst the negative sentiments, the price action showed a follow-on decline. The token failed to hold the gains, resulting in a panic selloff. Sellers added short positions until it stayed below the 20-day EMA mark, which would unlock the doors toward the $220 mark.
In his X post, @Dippy.eth indicated that the Bittensor token looks weak and took a big hit.
$TAO halted it's blockchain
— Dippy.eth (@dippy_eth) July 3, 2024
Not looking too good. Price also took a big hit. Opportunity to grab the dip? It has been dumping ever since Binance listing
That's why Binance listing looks like the exit signal @binance get lowcaps with fairlaunches on ASAP!
Are you bullish on… pic.twitter.com/79DQflSK8d
A tweet by Dippy.eth | Source: X
The RSI curve stayed in the oversold region and produced a negative divergence, while a rebound seemed likely. TAO may retest the $250 mark in the next few sessions.
Sharp Spike in Price Volatility and Weighted Sentiment Data
Following the price decline, the price volatility data displayed a sharp rise of over 320% to 0.057, revealing sharp speculation in the last trading session.
Weighted Sentiment Data (TAO) | Source: Santiment
Similarly, the weighted sentiment data conveyed a rebound and retained the midline region, reflecting a neutral outlook.
Social Dominance Data Reveals Spike
Ahead of the suspicious activity in the token, there was a sharp spike in the social dominance data, highlighting increased user activity on social media platforms.
Source: Santiment
Development activity data stayed at the top and was rising consistently, reflecting a positive outlook.
Futures OI Data Hints Short Additions
Since the news on operations broke, the seller army has been adding short positions and is eyeing to push the token below $225 and extend the decline.
TAO Futures OI data | Source: Coinglass
The open interest data spiked over 17.28% to $51.05 Million in the last 24 hours and signaled massive short additions.
The immediate support levels for the Bittensor token are $235 and $230, whereas the key upside hurdle is around $250, followed by $256
The TAO token price was below the key moving averages, signaling a massive decline in the past trading sessions. Moreover, the trend is negative, and buyers stay on the back foot.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
