- Bittensor completed its first halving on December 14, 2025, slashing daily TAO emissions from 7,200 to 3,600 tokens.
- TAO price plummeted more than 20% in the week following the halving, reflecting a classic “sell the news” reaction amid broader market pressures.
- Crypto analyst CryptoTony suggests a potential upside move to retest the $268 resistance level, offering hope for bulls in the decentralized AI sector.
The volatile world of cryptocurrency, Bittensor (TAO) has been making headlines for all the wrong reasons lately. The decentralized AI network’s native token experienced a sharp decline following its inaugural halving event on December 2025, which reduced daily token issuance by half to 3,600 TAO.
This mechanism, inspired by Bitcoin’s halvings, was anticipated to bolster scarcity and drive prices higher. Instead, TAO crashed over 20% in the subsequent week, dipping to lows around $217 before stabilizing near $225 as of December 2025.
CryptoTony’s $268 Retest Thesis
The “sell the news” sentiment appears to be the primary culprit. Investors who accumulated TAO in anticipation of the halving offloaded their holdings post-event, exacerbating the downturn. Broader market dynamics, including compressed valuations in new tokens across infrastructure and gaming sectors, have also weighed on TAO, which ranks among the top AI-focused cryptos. Despite the setback, Bittensor’s ecosystem continues to innovate, with features like subnet-specific “Alpha” tokens (dTAO) introduced earlier in the year to enhance network efficiency.
Technical Levels: $200 Support, $300 Upside
Prominent crypto trader CryptoTony, known for his technical analyses, shared an update on X (formerly Twitter) on December 22, highlighting TAO’s price chart. The perpetual contract on Bybit showed a breakdown below the $268 support line, with prices tumbling to $234. CryptoTony expressed optimism, stating, “I would love to see us shoot up to test that level please,” referring to a potential retest of the $268 zone from below. This could signal a reversal if bulls regain control, potentially forming a higher low in the ongoing downtrend.
Decentralized AI Fundamentals
From a technical perspective, TAO’s chart reveals a series of lower highs since November, with key resistance at $268 and support near $200. The halving’s reduced emissions could eventually support price recovery by tightening supply, especially if adoption in decentralized AI grows. However, risks remain, including regulatory scrutiny on AI tokens and competition from projects like Render or Fetch.ai.
Looking ahead, price predictions for TAO vary. Some analysts forecast an average of $452 by December 2025’s end, implying over 100% upside from current levels, driven by post-halving scarcity. Yet, the immediate outlook hinges on market sentiment. If TAO reclaims $268, it might target $300+; failure could see further drops to $180. Traders should monitor volume and RSI for signs of reversal. As always, crypto investments carry high risk—conduct thorough research before diving in.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
