This drop didn’t come out of nowhere—the fake breakouts at the highs of $TAO had already exposed the problem.

At first, many thought it was just a normal pullback, but the key point is that after the pullback, it didn’t recover quickly, the rebound volume got weaker, and every time the price touched the upper level, it got sold off. What I was watching at the time was exactly this pressure. After entering a short near 277.1, I didn’t rush to exit because the structure had clearly changed.

Now the price has come to 207.8, and the yield has reached +1211.33%. This phase of short selling has been realized quite smoothly. The market isn’t afraid of a drop; what’s scary is when it drops and then immediately rallies back. But for now, the strength of the bounce is weak, indicating that the initiative is still with the bears.

After taking profits, don’t get carried away. If you have positions, you can take most of the profits off the table first, leaving a small portion with a protective stop to see if the move extends. The biggest risk in trading is becoming passive due to greed after profits. For those who missed the move, don’t chase—wait for a more comfortable entry.

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