$TAO

Most people see a pullback after a breakout and panic.

That's understandable, so let me explain what is going on here.

Price broke out, ran directly into major overhead supply at $360, and got rejected. That rejection is what caused this pullback. It is not random. It is price responding to a level that has work to do.

Now it's back at $300. The same level that was resistance on the way up is now being tested as support.

What is worth watching is the character of the volume during this retest of support. Volume contracted on the way down from $360, with each leg down quieter than the last.

However, sell volume is still dominant. Red bars consistently outweighing green as price sits on the boundary.

For this retest to confirm cleanly, buy volume needs to absorb that selling and begin to dominate as price stabilises.

A retest on low total volume is healthy. A retest where sellers are consistently winning the exchange at support is a different conversation.

An interesting 48 hours coming up for $TAO holders..

#TAO #TrendingTopic #TradingSignals #TAOTrading

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