The crypto-AI sector shows interesting dynamics. Over the past month, its market cap has grown from $12.76 billion to $14.42 billion, but not all tokens have maintained profits equally. TAO — one of the main players in this segment, and its current situation is quite indicative of the overall market sentiment.

Half a month ago, TAO attempted to break through $200, rising nearly 50% in five days, but this movement was not supported. Now, the picture is different. According to recent analyses, open interest has increased by 6% over the day, but the spot CVD has been decreasing for a week, and funding rates remain negative. These are classic signs that speculators expect further decline, and overall demand has weakened.

Technically, TAO is trading within a range between $165 and $200 since mid-February. Currently, the momentum is clearly bearish — OBV has fallen below local support, indicating increased selling pressure. Additionally, Bitcoin has retreated below $70 thousand, which usually drags the entire altcoin market down. It seems that the next target for TAO will be the lower edge of the range around $165.

There is a reason for traders to pay attention here. The liquidation heat map shows that $160 and $200 are key magnets for the price. Opportunities for shorts can be sought around $200 , and for longs around $160. The long-term trend is, of course, bearish, but as long as the price remains in the range, profits can be made on fluctuations. The main thing is to wait for a breakout and understand where the market cap of the entire AI sector will go.