From TradingView · · 1m 10s
TAO Tests Critical Support
TAO tests critical support as bears face potential trap.
In brief
TAO tests critical support as bears face potential trap. TAO is testing $215-$217 daily support with bullish reversal signals but requires confirmation to avoid bearish trap. Originally reported by TradingView.
TAO tests critical support
TAO is currently trading around $216 and testing a major Daily Support zone after spending the last sessions moving lower inside a clear falling wedge structure.
Timeframe conflict
The Weekly and Daily structures remain bullish while the 4H and 1H remain bearish, creating a critical decision point.
Bullish divergence
A bullish divergence is developing on the momentum indicator suggesting bearish momentum is weakening despite recent price pushes toward new local lows.
Confirmation needed
TAO must hold the daily support area around $215-$217 to maintain bullish reversal possibility but requires buyers to reclaim falling wedge resistance for confirmation.
Upside targets
A successful breakout above $223-$224 1H resistance could open the path toward $230 where the much stronger 4H resistance begins.
Bearish scenario
A confirmed candle close below approximately $212 would invalidate the bullish setup and signal sellers remain firmly in control.
Professional approach
Professional traders require patience to identify important levels, wait for confirmation, and execute only when probabilities become favorable.
The main idea
TAO is testing $215-$217 daily support with bullish reversal signals but requires confirmation to avoid bearish trap.
