Bittensor's TAO Token Plummets 18% Following Covenant AI's Exit Announcement
- Token Plunge: Bittensor's TAO token dropped over 18% in a single day following Covenant AI's exit announcement, fluctuating between $263 and $292, breaching its 200-day moving average, with $250 now serving as a critical support level, indicating market concerns about its future.
- Governance Controversy: Sam Dare, founder of Covenant AI, accused Bittensor co-founder Jacob Steeves of centralized governance, claiming he suspended token emissions to Covenant's subnets and revoked their administrative rights, significantly undermining the protocol's operational infrastructure.
- Market Reaction: Following the announcement, Dare liquidated over 37,000 TAO tokens, creating immediate downward pressure on the market, while trading volume surged by 156% within 24 hours, reflecting investor anxiety regarding the network's future.
- Derivatives Market Dynamics: Bittensor's derivatives market open interest declined nearly 1% to $392.59 million, with significant liquidation activity observed on exchanges like OKX and Gate, highlighting a waning confidence in TAO among traders.
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Technical Analysis for AI
Technical Sentiment Analysis for Sleepless AI (AI). As of , Sleepless AI (AI) is exhibiting a Sell technical sentiment. Our proprietary analysis, which aggregates 3 technical signals, shows that 0 indicators are flashing buy, while 3 are indicating sell.
Momentum Indicators: RSI, MACD & Overbought/Oversold Status. Currently, the Relative Strength Index (RSI) for AI stands at -, which suggests a Neutral condition. Meanwhile, the MACD (12, 26) indicator is at -, providing a Neutral signal for short-term momentum. Other oscillators like the Stochastic Oscillator at - and the Commodity Channel Index (CCI) at - further confirm a - outlook for the crypto.
Support, Resistance & Moving Averages. From a structural perspective, AI is trading below its 60-day moving average of $- and below its 200-day long-term moving average of $-. Key price levels to watch include the immediate resistance at $- and strong support at $-. A break above $- could signal a bull continuation, while falling below $- may test the next Fibonacci floor at $-.
Sleepless AI (AI) Support & Resistance Level
| Name | S3 | S2 | S1 | Pivot Points | R1 | R2 | R3 |
|---|---|---|---|---|---|---|---|
| Classic | 0.0144 | 0.016 | 0.0176 | 0.0192 | 0.0208 | 0.0224 | 0.024 |
| Fibonacci | 0.016 | 0.0172 | 0.018 | 0.0192 | 0.0204 | 0.0212 | 0.0224 |
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