$TAO Wait and See

I. Overall Trend Judgment (Core)

Prices are approaching the starting platform of the rise in August-September this year ($220 - $240). This is the last line of defense for the bulls. If this level is breached, all previous gains will be wiped out, and it may even test the previous low.

TAO's medium-term trend is bearish. It is currently in the process of finding a bottom. Although the decline has been deep, the bottoming signal is not yet clear, and there is still a risk of further downward momentum.

II. Key Levels

Resistance Levels (Selling Pressure Zone):

Short-term Resistance: $280.0 - $300.0. The recent rebound high and psychological level during the decline. Upon rebounding to this level, those trapped above will be eager to break even.

Strong Resistance: $360.0 - $400.0. The bottom of a densely traded area. A break below this level would put TAO in a weak zone. Unless it rebounds back above $360 with significant volume, the downward trend cannot be reversed.

Support Levels (Defense Zone):

Lifeline: $220.0 - $230.0. The starting point of the September rally is around this level. Bulls must hold this level at all costs, otherwise stop-loss orders will be triggered, leading to a sharp drop.

Extreme Bottom: $160.0 - $180.0. The lowest point area. This is the "ironclad bottom" in extreme market conditions and the last line of defense for long-term funds.

III. Volume Signals

Signal: Decreasing volume during the decline, lacking support.

Compared to the active trading volume during the October rally, the current volume is shrinking.

Interpretation: Cautious buying. Although panic selling hasn't occurred on a large scale, insufficient buying pressure has caused the price to continue its downward trend. A large bullish candle with high volume is needed to confirm the entry of funds.

IV. Trading Strategy

For holders: Pay attention to the $220 level.

Selling at the current $237 level is not cost-effective.

Recommendation: Hold $220 at all costs. If it doesn't break through, a rebound from oversold levels is possible; if it breaks down decisively, it's recommended to exit the market to avoid a pullback to $160.

For those without positions: Patiently wait for a second test.

Left side: Aggressive traders can try a small position in the $220-$230 range, with a stop-loss at $210.

Right side: Wait for the price to rise above $280 again before entering the market to confirm a trend reversal.

Golden pit: If market panic causes the price to plunge to $160-$180, it presents an excellent long-term buying opportunity.

V. Summary

TAO is undergoing a "value correction," and $220 is a precipice. Do not blindly try to catch a falling knife before seeing a bottoming signal!