Update on $TAO - A significant long liquidation has been spotted.
A significant long liquidation of $6,537.8 was recorded at the critical level of $421.9. Such a move can shake out weak hands and lay the foundation for the next big wave. Let's break down what is really happening and where smart money might look next.
Technical analysis for $TAO
Current market sentiment:
The recent liquidation indicates that over-leveraged long positions are being wiped out at higher levels, signaling weakness from impatient bulls. However, this type of liquidation can create an opportunity if support areas hold.
Buy zone (entry range):
$384 – $398
This is a major demand area where price has historically found buyers. If $TAO dips to this area and shows signs of strength, it could be a strong re-entry point.
Target levels (upside potential):
Target 1: $432
Re-testing the liquidation zone, now a potential resistance level.
Target 2: $455
Resistance is gathering in the mid-range.
Target 3: $487
If momentum increases, this level becomes the next logical target before the previous peak.
Stop Loss (risk management):
Below $368
A clear break below this area will invalidate the setup and indicate a deeper decline, possibly towards $340.
Strategic note:
This setup prefers entry with patience on dips with a tight stop. Watch volume reaction near the buy zone and look for bullish divergence or reclaiming key moving averages.
This is not just a chart - it's a psychological battleground. The liquidation at $421.9 has forced out over-leveraged traders. Now, the stage is set for disciplined players to take control.
Let the weak hands exit. Plan your entry precisely.
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