TAO dropped roughly 25–27% within hours after Covenant AI — a major contributor on high-emission subnets — exited and reportedly sold ~37,000 TAO (~$10M+). The sell-off erased close to $900M in market cap, caused over $9M in long liquidations, and pushed TAO from rejected highs near $330–$360 down toward ~$260 on a volume spike. Key technical level: 50-day moving average near $250; a hold could enable a rebound to $300–$320, while a break below $250 could extend the correction toward $220–$200.

Summary states Covenant AI exited and dumped ~37,000 TAO (~$10M+), TAO fell ~25–27%, erased close to $900M market cap, and triggered >$9M in long liquidations; price moved from ~330–360 to ~260 with 50-day MA near $250 and possible targets of $300–$320 on bounce or $220–$200 if $250 breaks.