TAO (Bittensor) 24-hour volatility reaches 36.5%: CovenantAI exit triggers plunge from $339.7 high to $248.8 low

Volatility Overview

In the past 24 hours, the price of TAO rose from a low of $248.8 to a peak of $339.7 before falling back to the current $264, resulting in an overall amplitude of 36.5%. The 24-hour trading volume surged significantly to approximately $1.98 billion, much higher than usual, indicating active trading amid high volatility.

Brief Analysis of Unusual Market Movement

• Covenant AI Exit Event: On April 10, 2026, major subnet developer Covenant AI announced its exit from the Bittensor network, citing concerns over centralization, and sold about 37,000 TAO subnet tokens (valued at roughly $9-10 million), directly triggering a 27% price crash from the $341 high and erasing approximately $900 million in market cap.

• Amplified Selling Pressure: On-chain data shows that after the event, spot net outflows increased and trading volume spiked but was dominated by sell orders, intensifying the downward price movement.

Market Views and Outlook

Market sentiment has turned negative, with community discussions focusing on the “crisis” and centralization risks sparked by Covenant AI’s exit. There are angry reactions and “rug pull” suspicions on platforms like X and Reddit; CoinGecko’s community sentiment shows 55% are bullish, but analysts warn that short-term selling pressure remains and the price may test lower support. Attention should be paid to subnet developments and responses from the founder.