【$TAO Signal】Short squeeze continues, 1H pullback is a buying opportunity

$TAO On the 1H timeframe, after a violent surge, the price is consolidating strongly above a key support level. RSI remains high but shows no bearish divergence, indicating a healthy correction in a short squeeze market. The 4H chart shows three consecutive bullish candles with a strong breakout, EMA20/50 golden cross upward, and a clear trend. Negative funding rates, firm prices, and stable open interest suggest strong buying support. A pullback is a good entry point.

🎯Direction: Long (Long)

🎯Entry/Order: 200.5 - 201.5 (Reason: 1H EMA20 dynamic support zone, also the 0.382 Fibonacci retracement of the previous rally )

🛑Stop loss: 196.5 (Reason: Break below 1H EMA50 and the previous 4H candle low, invalidating bullish structure )

🚀Target 1: 208.0 (Reason: Previous high resistance level and intraday high )

🚀Target 2: 215.0 (Reason: Fibonacci extension at 1.618 based on recent rally height )

🛡Trade management:

- Position size suggestion: Light position (Reason: 1H RSI has exceeded 80, short-term volatility is intense, risk control is necessary )

- Execution strategy: After reaching Target 1, reduce position by 50% and move stop loss to entry price. Hold remaining position for Target 2. If price pulls back to entry zone, consider adding once.

Deep logic: Market data shows that after the rally, open interest did not decline, indicating not just short covering but new long positions entering. Although buy-side depth is slightly weaker than sell-side (depth imbalance -1.19%), the price refuses deep correction despite selling pressure, showing strength. The high RSI on the 1H chart is typical of a short squeeze. As long as there is no bearish divergence, follow the trend. The key is whether the price can hold above the 200 level.

Trade here 👇 $TAO

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