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TAO Crypto Faces 11% Dip, Consolidates Below $500 – What Now?
In a shocking turn of events, TAO (TAO) has taken a drastic 11% hit, settling below the crucial $500 mark. This sudden decline has left many investors and traders alike questioning what’s next for this cryptocurrency.
Firstly, it is essential to acknowledge that while the short-term consolidation may be unwelcome news, the fundamental analysis still suggests a strongly bullish structure on both the daily and weekly timeframe price charts. The token’s 35% rally in the past three weeks has not been enough to break the long-term resistance at $500, but this does not necessarily mean it cannot happen in the future.
The latest price action has seen TAO retest the support zone around $400, and while this may be a temporary setback, it is essential for traders to remain patient and cautious. The chart shows that even if the token were to drop below $400, there are strong indications of a bullish reversal at the $392-$400 area.
For now, the most reasonable course of action appears to be waiting patiently for a retest of the $420 level, followed by a more critical resistance around $442. The price may well meander between these two levels over the next few days, building up steam before its next impulse move.
In conclusion, traders are advised not to get caught in the lower timeframes and instead focus on the bigger picture. This market analysis is grounded in real-world data from reputable sources like TradingView and CoinGlass, providing actionable insights for those seeking to optimize their trading strategies.
Source: ambcrypto.com
