Update on $TAO – Major Long Liquidation Spotted
A significant long liquidation of $6,537.8 just hit the books at the critical level of $421.9. This kind of move can shake weak hands and set the stage for the next big wave. Let's break down what's really happening and where smart money might be looking next.
Technical Analysis for $TAO
Current Market Sentiment:
The recent liquidation signals that leveraged longs are being wiped out at higher levels, suggesting weakness from impatient bulls. However, this kind of flush can create opportunity if support zones hold firm.
Buy Zone (Entry Range):
$384 – $398
This is a key demand zone where the price has historically found buyers. If $TAO dips into this area and shows signs of strength, it could be a strong re-entry point.
Target Levels (Upside Potential):
Target 1: $432
A retest of the liquidation zone, now a likely resistance level.
Target 2: $455
Mid-range consolidation resistance.
Target 3: $487
If momentum builds, this level becomes the next logical target before the previous top.
Stop-Loss (Risk Management):
Below $368
A clear break below this zone would invalidate the setup and suggest deeper downside, possibly toward $340.
Strategy Note:
This setup favors patient entries on dips with tight invalidation. Watch volume reaction near the buy zone and monitor for bullish divergence or a reclaim of key moving averages.
This isn't just a chart—it's a psychological battlefield. The liquidation at $421.9 flushed out over-leveraged traders. Now, the stage is set for disciplined players to take control.
Let the weak hands exit. You plan your entries with precision.
