Technical Analysis (TAO/USDT 4-Hour Chart)



1. Chart Review:


• Pattern: The price appears to have broken out of a downtrend in the past and is now in a sideways consolidation. This could be a sign of a potential reversal or continuation of the uptrend.


• Support and Resistance:


• Major Resistance: 680-700 USDT zone. This zone is a strong resistance area where the price has been rejected many times before.


• Intermediate Support: There is an intermediate support area at 520 USDT. The price can be expected to find strength from this level and move upwards.


• Lower Support: The 480 USDT level is the last defense point where the price can hold on in a possible decline.



2. Target and Prices:


• Target 1: 680-700 USDT - Testing the main resistance zone can be targeted.


• Target 2: If a breakout occurs with higher volume, 800 USDT and above can be targeted.



3. Indicators:


• Volume: Increased volume during the recent rally indicates support for the uptrend. However, volume has decreased during the current consolidation. An increase in volume should be expected to confirm the breakout.


• Momentum Indicators: Indicators should be monitored carefully. If momentum indicators such as RSI or MACD are approaching overbought or oversold areas, caution should be exercised.



4. Trend Direction:


• Short-Term Trend: Up. The price breaking the downtrend and then moving in consolidation gives possible signals for the continuation of the rise.


• Medium Term Trend: Potentially bullish, but critical resistance level needs to be broken.


• Long-Term Trend: Not yet evident, but if the upward momentum continues, a stronger trend may form.



5. Strategy and Recommendations:


• Buying Strategy: If the price maintains stability above 520 USDT, purchases can be considered. If it closes above 550 USDT with an increase in volume, the rise can be approved.


• Profit Taking: The first target can be determined as 680-700 USDT level. Profit taking can be done in this region, but depending on the strength of the breakout, higher levels can be targeted.


• Stop-Loss: Closing below 480 USDT level may invalidate the bullish expectation. Using stop-loss below this level is recommended.


• Risk Management: The risk ratio should be calculated well before entering into a transaction. It would be a strategic decision not to risk more than 2-3% of the investment.



6. General Comment:


• This chart is showing signs that support a potential bullish move. However, it is very important for the price to break the 680-700 USDT level with volume. If not, the price may return to the consolidation zone.


• The most important factor to pay attention to is sudden changes in volume and price movements. General trends in the market and macroeconomic data should also be taken into consideration.