According to data from crypto.news, Bittensor's (TAO) price dropped 4.3% in the last 24 hours to trade near $225 on June 19, bringing its losses to nearly 20% since June 15, when the AI-focused token peaked around $283 before governance concerns and derivatives liquidations triggered a reversal. The decline has accelerated to seven consecutive days of lower lows, with TAO dropping to $222 and appearing close to erasing all gains made earlier this month. The latest data shows TAO has fallen below both its short-term and long-term moving averages, signaling persistent bearish pressure. The Relative Strength Index (RSI) has formed a bearish crossover and dropped to 44, reinforcing the weakening market structure as the token continues trading below a descending trendline that has capped every recovery attempt since June 15.
According to AMBCrypto analysis, TAO's recent weakness coincided with rising whale activity, with data from CryptoQuant's Spot Average Order Size showing large orders entering the market over the past week. The spike in large orders suggested heightened whale participation in the Spot market, though the metric alone could not determine whether whales were buying or selling. By contrast, Spot Taker CVD remained negative throughout the same period, indicating sellers maintained control of market activity. The Spot Buy Sell Volume metric reinforced this trend, with sell volume consistently exceeding buy volume since June 14, resulting in a negative Buy Sell Delta for seven straight days. This persistent Spot selling pressure appears to be a key driver behind TAO's continued decline, with active whales primarily selling rather than accumulating positions.
While supporters view the Root Reborn proposal as a long-term fix for Bittensor's tokenomics, opponents argue it could introduce governance concentration, liquidity stress, and regulatory complications. Among the most vocal critics, validator group Yuma warned that Root Reborn would transform validators from neutral network operators into active capital allocators. According to Yuma, the framework could create incentives for collusion, preferential treatment, and frontrunning while encouraging subnet teams to prioritize validator relationships over AI product development. "Such a change could fundamentally alter the role of validators," Yuma wrote in its assessment of the proposal. Concerns extended beyond governance mechanics, with Yuma arguing that rewards tied to baskets of subnet tokens could become difficult to liquidate during periods of market stress, while a wave of unstaking could create execution disadvantages for later redeemers. The debate underscores the importance of community involvement in governance, as when proposals affect core mechanics, broad consensus becomes vital, and rushed or poorly received changes can damage reputation and price action.
The daily chart shows TAO breaking below a major horizontal support zone near $237, a level that acted as a floor during April and May. What previously served as support now risks becoming resistance after the breakdown. Murrey Math levels place the token below the 3/8 trading range support at $218.8, while the next major resistance stands near the 4/8 pivot at $250. On the four-hour chart, TAO has fallen beneath the 23.6% Fibonacci retracement level at $228.2 after rejecting the 0.786 retracement near $273.8 earlier this week. Price continues to trade below a descending trendline that has capped every recovery attempt since June 15, with the token's failure to reclaim the broken $237 support leaving the market vulnerable to another leg lower toward the $208 Fibonacci support zone. The four-hour chart paints a similar picture after rejecting higher Fibonacci retracement levels, with momentum indicators like MACD turning bearish, confirming short-term weakness. Support levels become critical in times like these, with the $220 area standing out as an important near-term zone, while a decisive break below it could open the door to much lower prices.
The downside picture remains concerning with a concentration of leveraged positions forming around the $225-$226 area, while thinner support appears below current prices until the $220 region. A decisive break beneath $220 could expose the June swing low near $190 before attention turns toward the longer-term support band between $180 and $200. To invalidate the bearish outlook, TAO would need to reclaim its short-term EMAs and close above $248, which could then enable a move toward $280. However, if current conditions persist with whale selling dominating market activity and the RSI remaining in bearish territory, the altcoin could revisit $214 before testing the key psychological support at $200. Losing $200 could strengthen bearish momentum and open the door to a decline toward $185. Technical indicators show sellers remain in control, with the MACD crossing into negative territory and Chaikin Money Flow at -0.27, showing capital leaving the market. If uncertainty surrounding the governance proposal persists while macro conditions remain restrictive, TAO may struggle to reclaim the $237-$250 zone that bulls need to regain control.
