$TAO Long, Based Off Of Round Number, Support + $BTC Correlation
2024-10-03

Trade Thesis: 

TAO has been performing exceptionally well recently. Bitcoin (BTC) is firmly supported at the $60,000 level and is bouncing back, providing positive confluence for TAO. 

TAO's 1-hour Relative Strength Index (RSI) is oversold, indicating potential bullish momentum. The confluence of TAO bouncing off the psychological round number support at $500, strong BTC correlation, and key technical indicators suggests a high-probability long setup with limited downside and significant upside potential.

Technical Analysis:

🔹 Strong Support at $500:

Psychological Support: TAO is holding above the $500 level, a key psychological number that often attracts strong buying interest.

🔗 BTC Correlation:

BTC Holding $60k: Bitcoin maintaining the $60,000 level and bouncing back adds bullish momentum to the broader crypto market, positively influencing TAO.
Bullish Momentum: BTC's upward movement provides additional support for TAO's potential rise.

📈 Technical Indicators:

RSI Oversold: TAO's 1-hour RSI is oversold and is crossing above 50, signaling increasing bullish momentum.

VWAP & EMAs: Both BTC and TAO are approaching key moving averages, setting the stage for potential breakouts.

Trade Setup:

🟢 Entry Points:

Aggressive Entry: Enter a long position around $507.
Conservative Entry: Wait for the price to cross above the VWAP, 20, and 50 EMAs on the 15-minute chart for additional confirmation before entering.

🛡 Stop Loss:

Set a stop loss at $489 to manage risk effectively.

Conclusion:

TAO presents a compelling high-probability long opportunity with multiple confluence points: strong support at a psychological round number, positive BTC correlation, oversold RSI on the 1-hour chart, and favorable technical indicators on the 15-minute chart. As traders, managing probabilities is crucial, and this setup offers a favorable risk-to-reward ratio with limited downside and significant upside potential. 🧠✨
