TAO revisits its long-standing $260–$300 support zone as broader market rotation continues. Pre-halving pressure and short-term selling guide the recent decline, with buyers reacting only on deep dips. Sector narratives position TAO, NEAR, and SHRD as complementary layers in an expanding AI ecosystem.
TAO trades under steady pressure as it returns toward a high-timeframe support region. The price action aligns with broader market rotation and pre-halving movement while sector narratives continue to frame TAO within a developing AI infrastructure stack.
TAO Retests High-Timeframe Support Amid Sustained Rotation
TAO approaches the $260–$300 support block that has acted as a structural base for nearly a year. Michaël van de Poppe noted on social media that TAO is entering a familiar zone where buyers have repeatedly positioned during broader market rotations. The asset’s failure to sustain levels near $470–$500 earlier in the year keeps it trading within a wide range.
The current pattern reflects a market environment shaped by predictable cyclical movement. Each rotation from the supply region has eventually returned to the same demand area, forming a slow-building accumulation structure. Moving averages continue to flatten, reinforcing expectations that TAO remains in a maturing range rather than a defined trend.
Market behavior leading into the upcoming halving has introduced added pressure. Price declines of this type often occur as supply adjustments approach, and the asset’s return to the support region fits the pattern van de Poppe referenced, with traders waiting for confirmation of post-event direction.
Market Structure Shows Resistance at Mid-Range Levels
Across the latest session, TAO moved from about $298.6 into a controlled downtrend. Lower highs and lower lows shaped the 24-hour chart, showing limited buyer strength. The early morning dip below the prevailing range produced a quick rebound, yet the move lacked continuation.
Attempts to reclaim the $294–$296 area were repeatedly rejected. Each intraday test faced renewed selling pressure, turning the band into a short-term supply zone. These reactions indicate that traders preferred exit points rather than building long positions during brief recoveries.
By the afternoon, TAO slid toward $292, setting a local low without a firm reaction. The absence of stabilizing volume or consistent higher lows keeps momentum tilted toward continued softness as the market searches for a more durable base.
AI Sector Narrative Positions TAO Within a Multi-Layer Ecosystem
The broader narrative surrounding AI-linked assets points to an emerging layered structure. TAO is framed as the intelligence layer, supported by its decentralized network for training, scoring, and open-model competition. This positioning appeals to developers seeking alternatives to centralized AI systems.
NEAR appears as the execution layer, offering fast transaction capacity suited for AI-native applications and agent-driven activity. The sector trend suggests rising demand for chains that support continuous logic flows and automated decision systems. This framework places NEAR within a growing arena of on-chain agent ecosystems.
SHRD and the Andrometa ecosystem represent the companion layer. Their focus on adaptive, persistent AI companions captures the consumer-facing side of the market. With SHRD preparing for a community sale, new tokenized entry points are forming as the AI sector expands toward user interaction models.