TAO Plummets 7% After Strong Rally, Bulls Face Crucial Hurdles

TAO's price plummeted nearly 7% within 24 hours after showing strong momentum earlier this month. The token had reached a three-month high near $277, giving bulls fresh confidence after months of challenging price action.

However, recent selling has quickly erased part of those gains. Coinalyze data shows open interest dropped 14.3% within the same period, and spot CVD continued declining steadily since Monday, signaling weaker market demand.

The falling demand creates a difficult setup for short-term bulls. Continued weakness could give TAO five straight daily losses, which would signal stronger selling pressure across the market.