TAO Technical Analysis Feb 23

TAO is approaching the critical support zone at 167.40$ while maintaining its downward trend. Rejection risk is high at nearby resistances, with liquidity hunt potential observed.

Current Price Position and Critical Levels

TAO is currently trading at 167.40$ and squeezed in the 165.10$-175.30$ range with a 3.35% drop over 24 hours. The overall structure shows a downward trend; price remains below EMA20 (183.12$) and RSI at 40.03 in the neutral-bearish zone. The Supertrend indicator is giving a bearish signal, with resistance marked at 219.18$. Across multiple timeframes (1D/3D/1W), 11 strong levels have been identified: 2 supports/2 resistances on 1D, 2 supports/3 resistances on 3D, and 1 support/4 resistances confluence on 1W. Volume is at a medium level of 134.85M$, but increasing volume on the downside supports sellers. Price is being tested in short-term order blocks and near liquidity collection zones.

Support Levels: Buyer Pools

Primary Support

The most critical support is at 166.0332$ (score: 74/100), aligned with the 24-hour low (165.10$) and a strong demand zone on the 1D timeframe. This level has been historically tested with the swing low from early February (rejected 3 times) and contains a high-volume buyer order block. It is reinforced by EMA50 confluence (around 168$) and Fibonacci 0.618 retracement. A liquidity pool has formed on 1D and 3D timeframes; this is ideal for stop-loss hunting, where buyers could enter. In case of a breakdown, a rapid downside move would be triggered.

Secondary Support and Stop Levels

Secondary support at 142.8000$ (score: 68/100) is the main demand zone on the 1W timeframe and the lower band of the wide channel from the November 2025 peak. It is supported by 5 historical tests (high volume spikes), an order block, and volume profile POC (Point of Control). There is EMA200 confluence (around 145$). The invalidation level is a close below 166$; this would open the path to 142$, with a downside target of 58.4268$. Liquidity for stop-losses has accumulated here, with big players eyeing buying opportunities.

Resistance Levels: Seller Pools

Near-Term Resistances

Near-term resistance at 173.6008$ (score: 63/100) is below the recent 24-hour high (175.30$) and in confluence with EMA20 and the 1D supply zone. Price has been rejected here twice (wicks and volume increase), harboring short-term order block sellers. There is RSI divergence potential; volume confirmation is required for a breakout. A resistance cluster also exists on the 3D timeframe.

Main Resistance and Targets

Main resistance at 190.6367$ (score: 60/100) is a strong supply block on 1W and 3D; it overlaps with the peak from the January 2026 rally and Fibonacci 0.382 extension. It has 4 historical tests (high volume rejection) and serves as a buffer before the Supertrend resistance (219.18$). Upside target is 268.7484$, but the R/R ratio (around 1:2.5) is risky. Breakout invalidation begins with a close above 173$; otherwise, seller dominance continues.

Liquidity Map and Big Players

Big players (smart money) are accumulating long positions at the 166$-142$ supports; this is ideal for liquidity grabs (stop hunts). Above, there are short seller liquidity pools in the 173$-190$ range, with manipulation potential via equal highs/lows. According to the volume profile, POC is around 166$, and imbalances indicate downward imbalance. In price action, BOS (Break of Structure) is downward, awaiting a 173$ breakout for CHOCH (Change of Character). Institutional buys are hidden at supports; monitor whale wallets.

Bitcoin Correlation

BTC is at 64,622$ with a 4.17% drop in a downtrend, showing high correlation with TAO (0.85). BTC supports at 64,323$-62,097$-60,014$ are critical; a break here would cascade to TAO at 142$. BTC resistances at 65,630$-68,204$, with the Supertrend bearish signal pressuring alts. Rising BTC dominance weakens TAO; follow TAO Spot Analysis for spot and TAO Futures Analysis for futures.

Trading Plan and Level-Based Strategy

Bullish scenario: Hold above 166$ + 173$ breakout (targets 190$-268$, stop 165$). Bearish scenario: 166$ breakdown (targets 142$-58$, stop 168$). Target a 1:2 risk/reward ratio, with MTF confirmation required. Monitor volume increases and rejection wicks. This is a levels-based outlook; not investment advice, do your own research. Volatility is high; pay attention to position sizing.