AI sector grows to $14.4B yet Bittensor fades – Will TAO revisit $165?

ambcryptoPublished on 2026-03-08Last updated on 2026-03-08

Abstract

The crypto AI sector's market cap grew from $12.76 billion to $14.42 billion over the past month. However, Bittensor (TAO) has struggled despite a brief rally in mid-February. After an unsuccessful attempt to reach $200 on March 7th, TAO faces bearish pressure. Data shows declining spot demand, negative funding rates, and increased selling pressure, with Open Interest rising 6% in 24 hours. TAO has been trading in a $165–$200 range since February, and current momentum suggests a move toward the $165 support level is likely. Traders may consider range-bound strategies, buying near $160 and selling near $200, until a breakout occurs.

The crypto AI sector tokens showed a relatively bullish performance over the past month. CoinMarketCap data showed that this sector’s market cap has grown from $12.76 billion to $14.42 billion in 30 days.

The performance was particularly noticeable in mid-February.

At that time, TAO rallied nearly 50% within five days, but was unable to keep hold of the gains. Its fortunes have turned since then, at least in the short-term.

TAO speculators expect continued losses

Coinalyze data revealed an Open Interest increase of 6% in the past 24 hours.

Most of these gains came when Bittensor [TAO] rallied toward $200 on Saturday, the 7th of March. This rally was not backed by sustained demand.

The Spot CVD has been in decline over the past week, and the Funding Rate was predominantly negative in March. Together, they highlighted the lack of demand and the overall short-term bearish market sentiment.

On top of the short-term bearishness, TAO has been trading within a range since mid-February. This range reached from $165 to $200.

At the time of writing, the momentum was bearish, and the OBV had slipped below a local support to indicate heightened selling pressure.

Combined with the Bitcoin [BTC] slide back below $70k, it is expected that TAO is headed toward the $165 range lows next.

Traders’ call to action- Use the range

The past month’s liquidation heatmap highlighted the range extremes as being the most obvious magnetic zones near the price. The $160 and $200 areas were places where trades can look to buy and sell, respectively.

It is true that the TAO longer-term trend is bearish. However, traders might benefit from trading the range until it breaks.

Final Summary

  • The attempted TAO rally to $200 on Saturday was quickly thwarted, and $165 seemed to be the next target.
  • The negative funding rates and falling spot CVD highlighted short-term bearishness.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

Related Questions

QWhat was the overall performance of the crypto AI sector's market cap over the past month according to CoinMarketCap?

AThe crypto AI sector's market cap grew from $12.76 billion to $14.42 billion over the past 30 days.

QWhat key price levels defined the trading range for Bittensor (TAO) since mid-February?

ATAO has been trading within a range from $165 to $200 since mid-February.

QWhat two metrics were used to highlight the lack of demand and bearish sentiment for TAO in March?

AThe negative Funding Rate and the declining Spot CVD (Cumulative Volume Delta) were used to highlight the lack of demand and bearish sentiment.

QAccording to the liquidation heatmap, what are the suggested buy and sell zones for TAO traders?

AThe liquidation heatmap suggested the $160 area as a buy zone and the $200 area as a sell zone.

QWhat was the primary reason the TAO rally to $200 on March 7th was unsuccessful?

AThe rally was not backed by sustained demand, as evidenced by the declining Spot CVD and negative funding rates.

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