$TAO - Parabolic Exhaustion Signal! ⚠️
TAO surges +8.28% to $396.3 but shows critical bearish divergence:
📉 Volume Decline: MA(5) volume 4.8K < MA(10) 5.8K - weakening momentum
🚨 Overextended Move: 10%+ pump in 24h without consolidation
🔻 Resistance Rejection: Failed breakout above $397.9 high
Trade Setup – SHORT
Entry Zone: $395.0 - $396.5 (parabolic top)
Stop Loss: Above $400.0 (psychological barrier)
TP1: $380.0 (immediate support)
TP2: $370.0 (volume gap fill)
TP3: $360.0 (measured move to 24h low)
Risk Control: 1-2% portfolio risk, confirm with 1H candle close below $392.0
Market Insight
Bearish divergence on RSI (price higher highs vs RSI lower highs)
Target 8-10% correction before next accumulation phase
Layer 1 sector cooling off after aggressive pumps
Key Trigger: Breakdown below $392.0 confirms distribution phase. Short aligns with mean reversion strategy after parabolic moves.
Visual Tip: Watch 4H candle close below $390.0 for accelerated downside.
