**Key Takeaways**
**What is TAO Synergies doing amid Bittensor’s price decline?**
TAO Synergies is aggressively accumulating TAO tokens, expanding its holdings to over 54,000.
**What is driving continued bearish pressure on TAO’s price?**
Persistent selling by other investors is outweighing accumulation, pushing TAO below key technical levels.
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Following a rejection at $460, Bittensor (TAO) has faced intense bearish pressure, reaching a low of $403. At the time of writing, Bittensor was trading at $404, marking a 10.42% decline on daily charts. Amid this price decline, institutional investors are taking the opportunity to buy the dip.
### TAO Synergies Increases Bittensor Holdings
Notably, as TAO retraced on its price charts, TAO Synergies shifted to an accumulation strategy. On October 20th, TAO Synergies (TAOX), a Bittensor Treasury company, announced that through acquisition and staking, it increased its holdings. The company expanded its TAO portfolio to 54,058 TAO tokens, becoming the largest publicly traded holder of Bittensor.
Following the acquisition, entrepreneur James Altucher commented,
“By scaling our TAO holdings to over 54,000 tokens, we’re not only holding a crypto asset, we’re also staking our claim in a network that’s redefining entrepreneurship and innovation.”
Such a massive acquisition during a market downturn indicates a strong long-term commitment to the project.
### TAO Synergies Raised $11 Million
This recent token acquisition comes just days after the firm announced it had secured funding through private placement. According to the team, the private funding round—backed by DCG and James Altucher—raised $11 million, which is yet to be deployed.
These funds will be used to purchase more TAO tokens and explore other revenue-generating opportunities, thereby increasing TAO holdings within the Bittensor ecosystem.
Since TAOX shifted to an aggressive accumulation strategy for the AI coin, its value has surged significantly. Over the past month, TAO Synergies is up 59%, with its market cap hitting $31 million.
### Bittensor Still Faces Bearish Pressure
Despite TAO Synergies’ accumulation, other investors remain bearish and continue to sell aggressively. According to CryptoQuant data, sellers have dominated the market for four consecutive days, as evidenced by Spot Taker CVD. This metric has remained in the red since October 16th, indicating persistent seller dominance.
For example, on October 21st, Bittensor recorded $40,000 in sell volume compared to $32,600 in buy volume. This resulted in a negative delta of $7,400, signaling strong spot selling pressure.
### Mapping TAO’s Path to Recovery
Although TAO Synergies continues to accumulate Bittensor tokens, this activity has not yet boosted TAO’s price. The reason is clear: many investors are aggressively selling, creating strong downward pressure on the market.
As a result, TAO’s Relative Strength Index (RSI) fell to 56 at press time and formed a bearish crossover, signaling growing seller dominance. At the same time, the token dropped below its short-term moving average, further confirming bearish momentum.
If these market conditions persist, TAO will likely face further losses. A drop from current levels could see Bittensor retrace to $378, with the 21-day moving average (21DMA) serving as critical support at $367.
However, if TAO Synergies manages to absorb the selling pressure, TAO could reclaim the 9-day moving average (9DMA) at $416 and potentially target $460.
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Stay tuned for updates on Bittensor’s price action as the market develops.
https://ambcrypto.com/tao-synergies-snaps-up-54k-bittensor-tokens-amid-11m-boost-details