Bittensor's TAO token is at risk of a significant decline, potentially dropping by up to 45% in the coming weeks. This follows accusations from Covenant AI, a major subnet operator, which has exited the ecosystem, claiming Bittensor is not as decentralized as it purports to be. The allegations have already led to a 30% drop in TAO's price from its weekly high, now trading around $249.
The market reaction was swift, with trading volume surging by 250% and $11.83 million in futures positions liquidated, predominantly long positions. Technical indicators suggest further downside, with TAO potentially falling to $200, a 25% decrease from current levels, and possibly reaching $144, marking a 45% drop. The bearish outlook is supported by fractal patterns and Fibonacci retracement levels, indicating continued pressure on the token.
Bittensor's TAO Faces Potential 45% Decline Amid Centralization Concerns
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