Bittensor's TAO token is facing significant downward pressure following Covenant AI's announcement to exit the ecosystem, citing concerns over Bittensor's centralization. This accusation has already led to a 30% decrease in TAO's price, which currently hovers around $249. Analysts predict that TAO could further decline by 25% to 45%, potentially reaching levels as low as $144. The selloff was marked by a 250% increase in trading volume, indicating that traders are reacting strongly to the negative news. In the futures market, approximately $11.83 million in positions were liquidated, suggesting that many bullish traders were caught off guard. Technical indicators, including Fibonacci retracement levels, support the bearish outlook, with TAO expected to test lower support levels around $230 before potentially hitting $144 if bearish trends continue. Investors are advised to exercise caution and conduct thorough research before making any trading decisions.