Crypto AI sector shows signs of life, but Bittensor’s long-term outlook stays bearish The crypto AI sector, which has been under pressure in recent weeks, lost roughly 30.28% of its market value over the past month and now sits at about $14.66 billion in combined capitalization. That selling cooled off starting Thursday, Feb. 12, when a short-lived rotation back into altcoins produced notable gains across several AI-related tokens. Bittensor (TAO) led the rebound, jumping about 30.93% from Thursday’s lows. Render (RENDER) and NEAR Protocol (NEAR) also participated, rising roughly 18% and 15% respectively—moves that coincide with a slight pullback in Bitcoin dominance in February and may signal early rotation into an AI narrative. (Source: TAO/USDT on TradingView) What the charts say about TAO - Daily structure: The 1-day swing structure remains bearish after the large impulse down earlier in 2026. Key momentum indicators—moving averages and the MACD—have been aligned with that bearish bias, even as short-term upward momentum has recently emerged. - Volume: On-balance volume (OBV) bounced alongside price during the uptick, but it is still within a longer-term downtrend, suggesting the rally may be corrective rather than a decisive trend reversal. - Short-term targets: The current bounce can extend past the local supply zone near $200. Fibonacci retracement levels place short-term bullish targets at approximately $241.4 and $268.2. - What would flip the trend: For TAO to claim a bullish daily swing, it needs a daily close above January’s high at $302.4—a scenario the analysts regard as unlikely for now given prevailing market sentiment and Bitcoin’s bearish bias. - Intraday structure and potential pullback: On the H4 chart, the local $202 supply has been swept, revealing notable imbalances around the $170 area (also aligned with the 20- and 50-period moving averages). This suggests a realistic near-term path where TAO could drop to roughly $165–$175 to fill that imbalance before attempting higher targets near $241 and $268. Bottom line The recent pop in TAO and other AI tokens may reflect temporary capital rotation into altcoins, but longer-term technicals and volume trends still favor the downside until stronger confirmation appears—most importantly a sustained daily close above $302.4. Sources: TAO/USDT on TradingView. © 2026 AMBCrypto Disclaimer: This article is for informational purposes only and does not constitute financial, investment, or trading advice. Cryptocurrency trading carries high risk—do your own research before making any investment decisions. Read more AI-generated news on: undefined/news

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