The crypto AI sector has been struggling in recent weeks. Over the past month, it has shed 30.28% in market cap to fall to a combined $14.66 billion capitalization.
However, since Thursday, the 12th of February, the sector has noted some gains.
In this brief uptick phase, Bittensor [TAO] has noted a 30.93% rally. This could be due to capital rotation into altcoins, evidenced by the slight slump in the Bitcoin [BTC] dominance in February.
Other leading crypto AI sector tokens, such as Render [RENDER] and NEAR Protocol [NEAR], were also up 18% and 15% since Thursday’s lows. This could be an early sign of a shift towards an AI narrative.
The 1-day swing structure was bearish, captured by the bearish impulse move the altcoin made in 2026.
The moving averages and the MACD captured the overall bearish momentum lately, although some short-term upward momentum was underway.
The OBV saw a bounce alongside the price, but like the price, remained in a longer-term downtrend.
The current TAO bounce can extend beyond the local $200 supply zone. The Fibonacci retracement levels at $241.4 and $268.2 were the short-term bullish price targets.
To flip the daily timeframe’s swing structure bullishly, TAO has to close a 1-day trading session above January’s high at $302.4.
At the time of writing, this appeared unlikely because of the wider market sentiment and the bearish Bitcoin bias.
The local supply at $202 has been swept, and the H4 chart revealed sizeable imbalances (white box) around $170. This price area also lined up well with the 20- and 50-period moving averages.
Therefore, over the next few days, it is possible that the Bittensor token will drop to $165-$175 to fill this imbalance before climbing higher toward $241 and $268.
