【$TAO Signal】Strong Breakout Follow-up Buying + Capital Support Logic

$TAO The 1H timeframe is in a strong consolidation at a high level, with the price staying close above EMA20(175.08). The 4H timeframe has formed a series of large bullish candles breaking through, indicating a strong trend. Although RSI(1H=79.61) shows overbought conditions, open interest(OI) remains stable, and buy-side depth is significantly solid (buy orders from level one to five far exceed sell orders), indicating strong willingness from major funds to support the market and reject deep pullbacks. This is a typical post-short squeeze continuation pattern, where volatility equals profit. Better to cut losses than miss the opportunity.

🎯Direction: Long (Long)

🎯Entry/Order: 188.50 - 189.00 (Reason: Breaks through the upper boundary of the current 1H consolidation zone, confirming momentum continuation)

🛑Stop Loss: 184.80 (Reason: Falls below the 1H EMA20 support and the low of the previous candle)

🚀Target 1: 195.00 (Reason: Previous high resistance area and psychological whole number level)

🚀Target 2: 202.00 (Reason: Based on the recent rally's 1.618 Fibonacci extension level)

🛡️Trade Management:

- Position suggestion: Light position (Reason: RSI is overbought, with risks and rewards of chasing high)

- Execution strategy: After reaching Target 1, reduce position by 50% to lock in profits, and move the remaining stop loss up to the entry price. If the price fails to hold above 189 or quickly drops below 188, abandon the entry and wait for stronger signals.

Depth logic: The 4H chart has closed with consecutive bullish candles, with increased buy volume indicating strong trend momentum. Although the 1H is overbought, the order book depth shows buy orders far exceed sell orders (depth imbalance of 22.22%), a typical feature of a strong market. Stable open interest indicates that long positions are not exiting en masse, combined with positive funding rates, suggesting market sentiment is bullish. The current strategy is to bet on continued strength, using small stops to capture accelerated profit segments.

Trade here 👇 $TAO

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