$TAO Just Faced a Major Shakeout — What's Next?
A massive $14.644K long liquidation just struck $TAO at $435.1, sending a wave of volatility across the chart. This kind of forced exit often signals one of two outcomes: either a deeper drop or the beginning of a powerful reversal.
Here’s a detailed breakdown:
Buy Zone (Re-Entry Opportunity):
$410 – $428
This is the accumulation zone where smart money may start positioning again. Keep a close eye on volume spikes and slowing downside momentum within this range.
Primary Target Levels:
Target 1: $452 (reclaim of breakdown level)
Target 2: $470 (minor resistance and psychological level)
Target 3: $498 (previous high and likely liquidation trap zone)
Stop Loss (Strict Risk Control):
Below $408
A clean break and close below $408 would invalidate the re-entry thesis and open doors to deeper downside. Cut quickly to protect capital.
What to Watch:
If $TAO consolidates above $435 after this liquidation, the squeeze may already be starting.
A clean break above $452 with rising open interest could trigger a short squeeze toward $470+.
Conclusion:
This isn’t just a dip — it's a pressure point. The liquidation at $435.1 could be the turning tide. Stay alert, manage risk, and prepare for volatility. The next few candles could define the entire move.