Bittensor (TAO) Drops Below $300 After Failing to Reclaim $325 Resistance

Bittensor (TAO) has experienced a significant price decline after failing to maintain its upward trajectory and reclaim the $325 resistance level. The cryptocurrency is now trading under $300, indicating a shift from a bullish to a bearish market structure. This downward movement has increased pressure on the demand zone between $220 and $260, which is now seen as a critical support area.

Market sentiment has cooled as sellers have regained control, particularly after TAO's failure to flip the $325 level. This rejection has opened up downside potential, with analysts closely monitoring the reaction near the key demand block. According to Sjuul of AltCryptoGems, TAO's inability to reclaim $325 could trigger a pullback toward the $220–$260 demand region, where buyers previously defended the price and initiated the rally to $350.

The technical formation reveals a lower high pattern developing after the initial rejection. TAO is currently trading below $300, with intraday action showing weakness. Any bullish reversal would require a swift flip of $325 back into support. The demand zone remains TAO’s last reliable defense area before further decline. If the price revisits this range and fails to bounce, bearish continuation could deepen. On the other hand, holding this block would offer buyers a potential reentry with reduced downside risk.

However, a strong reclaim above $325 would invalidate the bearish scenario and restore market confidence. Price has consistently failed to generate enough volume to challenge this level convincingly. The ceiling remains firm, capping short-term gains for now. Another important point to keep in mind is that momentum shifts rapidly in altcoins like TAO. While the structure appears weak, intraday volatility can change setups quickly. Therefore, all eyes remain fixed on how TAO reacts around the $220 demand zone and the $325 resistance band.