Pay attention to TAO, the AI sector token that is currently struggling to maintain its rally. The market cap of the AI crypto sector did grow significantly a few months ago, but TAO itself couldn't hold its gains. It previously spiked close to $200, but now it's down again. Currently, TAO is at $251.50 but with short-term bearish momentum.

What's interesting is that open interest increased by 6% but that is artificial. Spot CVD has decreased over the past week and the funding rate is mostly negative. This means demand is not sustainable, and speculators are actually expecting losses. The trading range has been stuck between $165 and $200 since mid-February.

From the chart, OBV has already broken below the local support. Selling pressure is increasing. With Bitcoin also retreating to $77.77K, TAO seems likely to test the $165 level again. For traders, you can look for entries in that support area, but don't expect the AI sector market cap to pump drastically in the near future. The long-term trend remains bearish, so range trading might be the best strategy until a sustainable breakout occurs.