TLDR:TAO price drops 10% in a day after losing $360–$370, a key Fibonacci-based support zone.$340 emerges as the next critical level, with $323 and $285 as deeper downside targets if selling persists.A bounce above $360–$370 could reopen upside targets at $440, $460, and even $512.Traders closely watch Fibonacci zones for signs of reversal as TAO’s August outlook hangs in balance.Bittensor has lately lost its grip on a critical support zone. The AI-linked crypto token failed to hold its critical support between $360 and $370. Instead, the market drove TAO lower, erasing nearly 10% in a single day. Traders now wonder if this is just a shakeout or the start of a deeper retracement. For now, the price sits near $342 and looks fragile.TAO Price Action: From Support Zone to BreakdownCrypto trader Kamran Asghar earlier pointed to $360–$370 as a major demand area. He noted it lined up with the 0.5 Fibonacci retracement level around $375, a spot where bullish reversals often form. But TAO didn’t hold that level.TAO price on CoinGeckoAccording to data from CoinGecko, the price slipped under this zone and now trades closer to $342. That drop follows a steep 15.65% decline over the past week, signaling strong selling momentum.Now that $360–$370 is gone, traders are watching the next retracement levels. The 0.618 Fibonacci zone sits around $353, which briefly failed to provide support. Below that, the 0.705 level at $338 and 0.79 near $323 are now key areas to watch.If selling continues, even the 1.0 Fib retracement at $285 could come into view. These levels often act like safety nets for exhausted markets. But until buyers step in, the pressure remains squarely on the downside.$TAO is currently testing a key Support Area around $360 – $370 on the Daily timeframe, which aligns with the 0.5 Fibonacci retracement level! The current price is approximately $378.39.After a strong upward move, Bittensor is undergoing a healthy pullback to a significant… pic.twitter.com/NUeMXcCDp6— 𝐊𝐚𝐦𝐫𝐚𝐧 𝐀𝐬𝐠𝐡𝐚𝐫 (@Karman_1s) July 31, 2025What a Rebound Would NeedDespite the breakdown, the bullish case is not dead. A strong bounce from the current area could still trigger a recovery toward $440–$460. Beyond that, traders would look to $512 and even $643 if momentum returns.For that to happen, price action must flip back above the broken $360–$370 range. Without it, sellers are likely to stay in control. Market watchers are keeping a close eye on whether TAO forms a base around $340 or slides further.Bittensor has entered a decisive phase. Whether it finds support here or continues falling will set the tone for the rest of August. Traders now sit on high alert as TAO tests these make-or-break levels. The post TAO Price Drops Hard, Bittensor Bulls Eye $340 Support for a Possible Reversal appeared first on Blockonomi.