Bitcoin, Ether, and XRP are all in the green as the cryptocurrency market rallied in the last 24 hours. 

While Bitcoin touched the $74k level, other leading cryptocurrencies were underperforming. 

Bittensor (TAO), a leading Artificial Intelligence (AI) token, is down by 2% since Wednesday and has dropped below the $190 mark.

The coin has failed to emulate the broader cryptocurrency market thanks to its declining retail interest.

TAO is down by 2% in the last 24 hours, making it one of the worst performers among the top 50 cryptocurrencies by market cap.

The bearish performance comes amid declining interest from retail traders.

Data obtained from CoinGlass shows that Bittensor’s futures Open Interest (OI) has declined to $145 million on Thursday.

The OI has been declining after hitting a monthly high of $176 million in February.

Furthermore, CoinGlass data show that OI hit a record $418 million in November, coinciding with TAO surging to $539.

With retail investors sitting on the sidelines, it indicates that they lack confidence in the AI token.

Thus, making it hard for the recovery effort to properly kick off. 

In addition to the declining OI, TAO’s OI-weighted funding rate has also dipped over the last 24 hours.

The weighted funding rate read 0.0057% on Wednesday but has now flipped negative and stands at -0.0011%.

A steady decrease in this metric would deter a sustained price recovery, as more traders lose confidence in Bittensor’s short-term outlook.

The TAO/USD 4-hour chart is extremely bearish as the coin is trading around the 50, 100, and 200 Exponential Moving Average (EMAs) cluster between $181 and $189 on the 4-hour chart. 

It has already dropped below the 50-day EMA, which served as the immediate support, making it harder for the bulls to embark on a recovery towards the $200 psychological level.  

The momentum indicators are slowly declining, suggesting a shift towards a bearish bias in the near term. 

The Moving Average Convergence Divergence (MACD) remains above its signal line on the 4-hour chart, with green histogram bars expanding and supporting the bullish thesis.

The Relative Strength Index (RSI) now reads 55, down from the 63 recorded earlier this week, indicating a shift away from the bullish bias held on Tuesday. 

If the bearish trend continues, TAO would retest the recent daily low of $184 over the next few hours.

An extended selloff period would allow the bears to drop towards the recent weekly low of $171 in the coming days.

However, if the bulls regain control of the market, TAO will rally towards the $200 psychological level.

The next magnet for the bulls will be the February swing high of $214.

The broader crypto market will remain volatile over the coming days as the crisis between the US and Iran intensifies.

The post TAO extends dip amid retail demand slump: Check forecast appeared first on Invezz

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