This wave is a classic sweep then kill. That fakeout above $TAO was too obvious. Many people chased the pump, but the price quickly dropped from 277.1 to 204.3. Short positions +1265.21% have been realized, and the volatility space has opened up very directly.

What really caught my attention at the time was not the drop itself, but the fact that the price couldn't hold after the rally. As soon as buying pressure receded, selling pressure immediately slammed in. This kind of level is most likely to shake out the hesitant and force chasing longs to stop out. Simply put, the rhythm has changed. It's not about whether you believe it or not; the chart has already reacted.

If you have a position now, don't be too greedy. Once profit comes out, you need to know how to handle it. An 80/20 batch exit is more comfortable: take most profit first, leave the rest for the possibility of an extended move, while setting a stop-loss. If you're not in, don't rush to jump in. Chasing shorts after a sharp drop is also easy to get slapped by a bounce. Don't chase trades. Wait for the next opportunity.

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