TAO – No Reversal Signal, Yet. From October 20th to December 14th, TAO increased by more than 700%.
In the past 19 days, TAO has been in a correction. Until today, TAO pulled back a bit more than 42%.
I am looking for a relationship between the time in the uptrend and the downtrend. Currently, we have 56:19. Meaning one day of correction for three days of appreciation (3:1). Is it enough? I can’t say for sure, but there is symmetry, which is a good sign.
As for the retracement. Do we have a signal that the correction is over? Not yet.
The price almost reached the 50% retracement, but the reaction is weak and does not show a bullish impulse. Currently, the price is hovering below the 38.2% retracement, and it doesn’t look like it has enough momentum to break through.
The RSI is in a downward-sloping channel. A breakout from the channel could signal a bullish reversal.
As for the price, it is in a Descending Channel. The initial breakout of this pattern is the origin point at the 400$ mark.
A touch and rebound of the 50% retracement or the channel's support line could be a long trigger, but I would like at least one more confluence factor, such as a bullish divergence and a reversal candlestick pattern.
At the moment, the best course of action is no action. Wait.
