The $TAO/USD trade setup suggests a cautious approach, given the current price of 319.2 USDT, and the levels of support and resistance that are closely aligned with recent price action. The price is currently hovering just below the resistance level (around 320.8), which is marked by the upper Bollinger Band, indicating potential selling pressure if it fails to break through this zone.
For a long (buy) setup, you would wait for the price to test the support level at around 316.7 (24-hour low), and look for signs of a reversal, such as a bounce or a shift in momentum. If the price respects the support and shows a solid move upwards, a long position could be initiated, with a stop-loss placed just below the support level to limit risk.
On the other hand, if the price breaks below 316.7, this could trigger a short (sell) opportunity. A break below this level may indicate further downside potential, especially if momentum accelerates. In this case, placing a stop-loss above the resistance level (320.8) would help protect against a sudden reversal.
Given the volatility and volume (37,503.25 TAO in the last 24 hours), it's crucial to stay mindful of potential price swings and adjust risk management strategies accordingly. The overall short-term trend is bearish, which may imply more downside risks, but the strategy could evolve depending on how the market reacts at key levels.
