TAO under pressure: correction or structural crisis?
The price of TAO is going through a delicate phase. After a rapid drop that brought it back to the $240–$255 range, the market stopped behaving like a simple technical correction. What is at stake now is something deeper: trust.
The trigger was clear. The launch of Covenant AI, accompanied by significant sales and questions about the governance of the protocol, exposed a fragility that had remained latent until now. The issue is no longer just the price: it is the perception of the ecosystem.
In the short term, the dominant scenario is one of weakness. TAO is moving within a critical range between $240 and $270, with rebounds that, for now, lack real volume. As long as it does not decisively recover the $270 area, any bullish attempt remains conditional.
If the current support gives way, the market could quickly seek lower levels around $220–$230. Conversely, a sustained recovery above $270 would be the first sign that the asset is trying to rebuild its structure.
However, technical analysis alone is not enough. The real focus is on what happens at a fundamental level. The possibility of new subnet launches, the response (or lack thereof) from the team, and the evolution of market confidence will be the determining factors in the coming days.
Despite this context, the background does not disappear. TAO continues to be part of a strong narrative linked to artificial intelligence, with a limited issuance model and an expanding ecosystem. But today, that potential is overshadowed by uncertainty.
The market is no longer in expansion mode. It is in evaluation mode.
The question is not how much TAO can rise in the short term.
The question is whether it can hold.
And that answer is still not clear.
