TAO Technical Analysis Feb 5

TAO is positioned at the critical primary support level of 168.40$ and is signaling oversold RSI (25.71) with a 10.43% drop in the last 24 hours. If this level breaks, downward liquidity sweep could be triggered, but if it holds, reaction buys may follow.

Current Price Position and Critical Levels

TAO is trading at the 168.40$ level in the overall downtrend and is showing a bearish short-term structure below EMA20 (218.38$). On the daily timeframe, it has 1 support/2 resistance confluence, on the 3-day it has 3 resistance pressures, and on the weekly 1 support/5 resistance, making a total of 9 strong levels prominent. Supertrend bearish signal points to 235.08$ resistance, while price is squeezed in the 168-192$ range. Volume at 224.63M$ supports the decline, but RSI oversold carries reaction potential. This position forms a liquidity pool where buyers are testing their last line of defense.

Support Levels: Buyer Zones

Primary Support

168.0000$ primary support (score: 80/100), strengthened by multi-timeframe confluence: tested as order block on 1D and 1W timeframes, where strong rejection was observed 3 times in the past. High volume node present in volume profile, a demand zone where buyers accumulate liquidity. Confluence with EMA50 (around 170$) and RSI divergence potential. This level is the swing low of the recent decline; a break accelerates downward momentum – historical tests have given 15%+ rebounds. If it holds, it forms a liquidity pool for short squeeze.

Secondary Support and Stop Levels

Secondary supports in the 150-155$ region (previous swing lows and 3D Fibonacci retracement 61.8%), invalidation below 148$ – this is psychological round number and monthly low confluence. Liquidity expected below 166$ for stop hunt, as 1D breaker block is downward. Close below these levels activates 66.9792$ downside target (score 22), R/R ratio becomes 1:3+. Volume spikes confirm buyer entries in these zones.

Resistance Levels: Seller Zones

Near-Term Resistances

175.9000$ near-term resistance (score: 75/100), strong with 1D timeframe supply zone and EMA20 (218.38$) approach. 2 failed breakouts here, seller dominance confirmed by volume. Short wicks formed as price approached this level, ideal spot for liquidity grab. Breakout triggers test of 24h range high (192$).

Main Resistance and Targets

198.9500$ main resistance (score: 62/100), premium order block in 3D and 1W confluence – one of 5 weekly resistances, historical high tests full of seller rejections. Supertrend at 235.08$ upper target, upside to 271.8758$ (score 10) Fibonacci extension. These levels are mitigation blocks in bearish trend; volume breakout required for breakout. Invalidation above 200$ daily close.

Liquidity Map and Big Players

Big players (smart money) are targeting stop losses below 168$ support – equal lows liquidity pool concentrated here. Above, 175.9-198.95$ range collects sell limit orders, imbalances ready for sweep. Price action fakeouts (wicks) show big players accumulating positions: 1W breaker structure downward, but long accumulation possible in oversold. Volume delta negative, but divergence may signal buyer entry. Liquidity map predicts upward sweep if 168$ holds, raid to 66$ if broken.

Bitcoin Correlation

BTC at 67,061$ level with 8.65% drop in downtrend, Supertrend bearish – TAO’s BTC beta high (correlation ~0.85), if BTC breaks 66,720$ support, TAO dragged to 150$. BTC resistances at 69,399-72,032$ to watch; BTC rebound carries TAO to 175.9$. Dominance increase pressures altcoins, if BTC falls below 62,778$, TAO downside to 66$ accelerates. BTC liquidity grabs trigger TAO – follow correlation in TAO Spot Analysis and TAO Futures Analysis.

Trading Plan and Level-Based Strategy

Hold above 168$: Long bias, 175.9$ target, stop below 166$ – R/R 1:2.5. On break, short: 66.9792$ target, invalidation above 175.9$. Wait for multi-TF confluence (1D/1W), volume confirmation required. Oversold RSI long trigger, bearish Supertrend short setup. This outlook is for educational purposes, risk management essential – risk 1-2% position sizing. Monitor levels on TAO Spot or Futures platforms.