Bittensor (TAO) fights NVIDIA AI market selloff, eyes on $300 support

Bittensor (TAO) has come under intense pressure as the broader AI-linked crypto sector absorbs a sharp downturn.The decline has pushed the token towards one of its most critical technical levels of the year, putting traders on alert as sentiment weakens and volatility rises.AI jitters weigh on the Bittensor (TAO) priceBittensor’s recent slide is tied closely to a broader wave of AI-sector weakness.The market reacted sharply after SoftBank exited its entire NVIDIA position, a move that erased confidence across AI-exposed assets.AI tokens shed more than 5% in market value after the selloff, with Bittensor (TAO) moving in near-lockstep with NVIDIA’s own decline.The cross-asset correlation has grown stronger in recent months, making TAO vulnerable to shifts in Big Tech sentiment.This link means upcoming NVIDIA earnings will play a significant role in shaping short-term market direction.Eyes are now on whether TAO will continue shadowing equity-market volatility or begin to decouple as liquidity patterns shift.In the meantime, TAO’s fundamentals and long-term narrative remain intact.The project’s decentralized AI model and the upcoming halving in late 2025 continue to attract long-horizon buyers, but those factors have not been enough to offset the present macro pressure.Technical levels tighten as uncertainty buildsThe chart shows clear signs of stress. TAO has already lost major support levels, including its 200-day EMA and the 50% Fibonacci retracement.Bittensor price chart | Source: CoinMarketCapIndicators confirm the weakness, with RSI hovering near bearish territory and MACD momentum accelerating downward.This combination reflects a market that is not only uncertain but actively taking risk off the table.Even so, the medium-term structure paints a slightly more balanced picture.Bittensor is still trading within a horizontal trend channel, with support near $300 and resistance around $360.This range highlights investor hesitation as they wait for a firm breakout to confirm a new direction.Past trading activity shows heavier volume at price peaks and lighter volume at bottoms, a pattern that sometimes precedes upward moves.However, confirmation is still required, and traders remain cautious.The $302–$313 zone now represents the immediate battleground. Bulls are attempting to defend this range, hoping to trigger a relief bounce toward the $330–$340 region.A decisive move above $340, and ideally $350, would be needed to shift sentiment and begin rebuilding a bullish structure.Analysts note that $357, $414, and $479 are the next major resistance levels if momentum returns.If sellers overpower this key area, the picture turns more severe.A break below $300 could open the door to deeper losses, with downside targets pointing toward $268 and, in a more extended decline, even the $212 region.Market braces for volatile days aheadThe broader crypto landscape is compounding the challenge.Over $500 million in recent liquidations, combined with a Fear & Greed Index reading deep in extreme fear, has drained liquidity from altcoins.In addition, Bitcoin dominance continues to rise, pushing smaller tokens such as Bittensor to the margins.Panic-driven trading has also pushed TAO’s volume sharply higher, reinforcing the view that current movements are driven more by capitulation than accumulation.For now, the focus stays on whether the Bittensor (TAO) price can hold the $300 support long enough to mount a recovery.The post Bittensor (TAO) fights NVIDIA AI market selloff, eyes on $300 support appeared first on Invezz