• Entry: Watch for price to retrace to the range 418 – 425 (near the resistance zone of the Kumo cloud + thick Volume Profile)
• Stop Loss: Above 438 (to avoid getting caught in false breakouts and trade according to momentum)
• Take Profit 1: 375 (previous short-term low)
• Take Profit 2: 355 (previous strong support zone with buying power)
• Expected R:R ratio: Minimum 2:1, ideally >2.5 if the price breaks the low
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📊 Technical analysis and strategy logic:
• Price structure: TAOUSDT is in an expanding sideways channel from 355 – 475. After several tests of the peak without breaking through, selling pressure has prevailed. The recent strong drop pulled the price through the Ichimoku cloud and down to the box bottom, indicating a breakdown of the accumulation structure.
• Ichimoku: Price is below the entire Kumo cloud, Tenkan & Kijun are both sloping down, and the cloud ahead continues to be red → The short-term trend has turned bearish.
• MACD: The histogram is significantly negative, with 2 MACD lines diverging strongly downward → The bearish momentum is still maintained, with no clear signal of a recovery.
• Volume Profile & Order Flow: Accumulated volume at the price range 420 – 440 is the highest in the recent chart, but the delta force has turned negative → This is a distribution zone, not accumulation. Large money may have exited here and left a strong resistance zone above.
With all the above factors, the retracement zone 418 – 425 is considered the 'ideal selling zone', allowing for safe SELL entries, short SL, and ample TP room. If the price does not retrace and continues to fall below 375, consider entering on a breakout.