TAOUSD Breakout and Retest Confirms Bullish StructureTAOUSD has shown strong bullish potential after breakout of two key patterns. The first pattern was a wedge, which formed between May and September 2024. This pattern is typically a bullish reversal signal, and as expected, the breakout led to a strong rally. After reaching new highs, the price then entered a bearish channel, which served as a corrective phase rather than a trend reversal. Recently, TAOUSD successfully breakout of this bearish channel and has now retested the breakout zone around $411, confirming previous resistance as a new support level.
Currently, the $400 – $411 zone acts as a critical support area that needs to hold for further upside continuation. If the price maintains strength above this level, the next key resistance to watch is $480, where previous price rejections occurred. In the medium term, the major bullish target lies at $705 – $730, aligning with a previous major high. From a trading perspective, aggressive entries can be considered around $410 – $420 during this retest, while conservative traders may wait for confirmation with a strong breakout above $480. A stop-loss should ideally be placed below $400, as a breakdown below this level could invalidate the bullish outlook.
For confirmation, volume strength should be monitored, as a breakout with low volume may indicate weakness or a potential fakeout. Additionally, broader market sentiment, particularly Bitcoin’s trend, could influence TAOUSD’s price action.
