Why Are Crashing: TAO, ICP, and NEAR Under Pressure

The crypto market is facing tough times, and are hit hard. Tokens like Bittensor (TAO), Internet Computer (ICP), and Near Protocol (NEAR) are dropping fast. Their total market cap fell 3.4% in the last 24 hours to $12.5 billion. This drop kills any chance for quick buy-the-dip trades.

The Latest Price Drops in

Let’s look at the numbers:

• Bittensor (TAO): Down nearly 3% today, trading at $158.
• Internet Computer (ICP): Lost almost 7% in 24 hours and 20% over the week.
• Near Protocol (NEAR): At $1.01, down 6% today and 17% in seven days.

These losses show a clear risk-off mood. Investors are pulling back from high-risk assets like AI tokens.

Bearish Signals from Bittensor Futures Market

The futures market for Bittensor tells a worrying story. Open Interest (OI) dropped to $106 million on Monday. This is the lowest since September 2024, down from $111 million the day before.

What is Open Interest? It measures the total value of open futures contracts. When OI falls, it means traders are closing positions instead of opening new ones. This shows low confidence in price recovery.

Compare this to November’s peak: OI hit $418 million when TAO was at $539. Now, at $158, the drop in OI signals weak demand and bearish vibes.

Technical Analysis: Charts Point to More Pain

TAO’s chart looks grim. The price sits well below key moving averages:

• 50-day EMA: $232
• 100-day EMA: $264
• 200-day EMA: $299

All these lines slope down, confirming a downtrend. The MACD indicator is below its signal line, but red bars are shrinking. This hints that selling pressure might ease soon.

A big descending trendline from the $539 high caps gains at $218. RSI at 28 screams oversold. This could lead to a short bounce. But to flip bullish, RSI needs to cross 50, and price must break that trendline.

If it fails, watch for an 11% drop to $142, a recent low.

What Funding Rates Tell Us About Sentiment

Funding rates show trader bets. Positive rates mean bulls pay bears, expecting rises. Negative rates mean bears pay bulls, betting on falls.

For like TAO, negative funding points to bearish expectations. Traders see more downside, raising liquidation risks and fueling the crash.

Broader Crypto Market Weighs Down AI Tokens

It’s not just AI coins. The whole market feels the heat:

• Bitcoin hovers near $70,000 after a 9% weekly drop. Spot ETFs saw $318 million outflows last week—the third straight week.
• Ethereum clings to $2,000 support amid falling futures OI.
• Ripple (XRP) dips to $1.40 on retail selling.
• PI Network falls 3% for the third day, tied to mainnet migration selling.

Bitcoin’s recovery from $60,000 lows shows some strength, but low retail interest keeps pressure on. Institutional outflows and volatility from 2024 events spill over to AI sectors.

Why Are Extra Vulnerable

AI tokens boomed on hype around machine learning and Web3. But now:

1. Hype Fade: Early gains were speculative. Fundamentals lag behind prices.
2. Risk-Off Shift: Investors flee to safer assets amid global uncertainty.
3. Liquidity Crunch: Lower OI means less trading volume, bigger swings.
4. Tech Sector Woes: Broader AI stock weakness (like Nvidia dips) hits crypto twins.

NEAR and ICP suffer from similar issues: weak charts, high resistance, and sector rotation away from AI.

Signs of Hope? Oversold Conditions and Potential Bounce

Not all doom. RSI oversold levels often spark rebounds. For TAO:

• A close above 50-day EMA ($232) eyes 100-day EMA ($264).
• Break $218 trendline resistance could rally to $250+.

Watch Bitcoin. If BTC holds $70,000 and climbs, AI coins might follow. Rising OI and positive funding would confirm bulls returning.

What Should Traders Do Now?

Short-term: Avoid new longs. Wait for RSI relief rally or EMA break.

Long-term: AI-blockchain mix has huge potential. Dips could be buys if you believe in decentralized AI growth.

Key levels to watch:

Final Thoughts on the Crash

The crash in stems from bearish technicals, falling OI, negative funding, and market-wide risk-off. TAO leads the pack down, but oversold signals hint at bounces. Stay tuned to BTC moves and key levels. In crypto, crashes breed opportunities—but trade smart.

Markets change fast. Check real-time charts for updates.

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