Bittensor (TAO) Price Plunges Amid Covenant AI Exit Concerns

Bittensor (TAO) has experienced a sharp decline in its price due to concerns surrounding Covenant AI's exit from the ecosystem. This development has led to increased uncertainty and profit-taking among investors, causing the token's price to drop nearly 10%.

However, despite this decline, technical structure remains intact for now, suggesting that the broader picture is still balanced rather than a structural breakdown. The market reaction has been intense, with traders quickly moving to lock in profits and accelerate downside momentum.

The token's price had staged a strong rally before the decline, making it one of crypto's better-performing AI narrative tokens in recent weeks. Now, Bittensor is trading at a critical technical support zone near $270, where buyers are defending trendline support and attempting to regain momentum.