$TAO Analysis

Technical Analysis

Since the last all-time high, we’ve experienced a decline of over 50%. We are currently in a downtrend channel that has been active and intact since December. The last support zone around $400 has been broken, along with the 0.618 Fibonacci level.

Fundamental Analysis

Open Interest is falling sharply, meaning fewer open positions in the market and no significant new positions being opened. This signals a clear loss of momentum.

Funding rate is neutral to negative, indicating more short pressure in the market. We have transitioned from strongly positive to strongly negative, which could point to a further downtrend.

Fear & Greed Index is currently neutral but hasn’t yet reached the extreme fear zone, which typically signals a bottom formation meaning we might still have room to fall.

Spot combined books show declining volume, which is critical for cryptocurrencies. Spot buying is one of the most important key factors in market strength, and there are very few cases where a coin rises despite declining spot purchases.

Game Plan

Both technically and fundamentally, the current market sentiment is bearish. I’ve set alerts for the $200-$180 zone, and I’ll be watching spot buying levels around $160. But wait for the reactions!

For now, I’d be looking at short entries in the futures market when we approach the upper trend channel boundaries. I won’t be considering longs unless we see a breakout to the upside in #Others and #altcoins.