Bittensor (TAO) prices crashed despite the project slashing the rate of tokens being issued into the market by half. Just like Bitcoin, TAO needs time to react to the halving.
Bittensor, which is a decentralized machine learning network that allows people to contribute, train, and monetize AI models on a blockchain-based incentive system, is conducting its debut halving event. Although the rate of tokens being emitted into the market was cut by half, this cut in supply was not directly reflected in the price.
Bittensor closely imitates Bitcoin. From the Bitcoin halving to a maximum supply of 21 million, Bittensor (TAO) aligns perfectly with Bitcoin. On December 14 and 15, the Bittensor had a halving event, where the rate of token minted is slashed by half.
According to the Bittensor website, “Every 12 seconds, a block is completed, emitting 1 TAO into the network. This results in 7,200 TAO emitted daily, which will drop to 3,600 TAO after the first halving.”
However, this halving did not help TAO to keep in line with the uptrend. The prices crashed below the ascending line as shown in the chart below. Currently priced at $282, the token will need to get close to $300 for it to be back above the trend line. After it gets above the trend line, the next immediate resistance is at $318, which happens to be also the 50-day Moving Average (MA).
From a technical point of view, the Moving Average Convergence and Divergence (MACD) line is rising. Although it reads a negative value of 10, it is headed in the right direction towards the positive side. This solidifies the case for a bull run in the future.
TAO has the potential to rise, but it will take time, just like Bitcoin took its time to surge.
