TAO is clinging to a key support level this week after the AEON payment integration announcement failed to spark buying interest. With short liquidations clustered above $200, a squeeze could be brewing — but the lack of demand means the token could just as easily slide lower.
The AEON deal that didn't move the needle
On Tuesday, TAO announced it had integrated with AEON for payments, a move that in theory should boost utility and attract new users. But the market response has been tepid. Volume remains thin, and the price has barely budged from the support zone it's been testing for days. Traders who expected a rally off the news have been left waiting.
Short squeeze setup above $200
Data shows a dense cluster of short liquidations just above the $200 mark. If TAO manages to push through that level, those positions would be forced to cover, potentially fueling a rapid upward move. But that's a big if. Without fresh buying pressure, the token lacks the momentum to trigger the squeeze. The setup is there — the catalyst isn't.
Demand deficit keeps bears in play
The bigger concern is the persistent lack of demand. TAO has been drifting lower since mid-July, and the AEON news hasn't reversed the trend. If buyers don't step in soon, the support level could break, opening the door to a steeper decline. The token is essentially stuck between two outcomes: a short squeeze or a breakdown. Right now, the odds don't favor the bulls.
For now, TAO remains at a crossroads. The next few trading sessions will show whether the AEON integration eventually attracts real demand or if the lack of interest sends the token below support.
