This drop has been really ruthless. $TAO has been pushed down from 277.1 all the way to 198.7, and the short positions’ unrealized profit is already showing +1362.53%. A lot of people got fooled by that mid-way pullback candle, thinking it was going to flip back to strength. But what I was watching then was the follow-through after the pullback—what happened was very clear: the price couldn’t get back above it.

The real change wasn’t just the moment it broke down below that level, but that after breaking the previous high, it repeatedly failed to break through. The liquidity/chips are all messy up there. The more the buyers who chased longs hesitate, the easier it is for the shorts to build momentum. This isn’t simple consolidation anymore—the structure has clearly changed. The key for holding shorts is not letting a small rebound scare you out.

Now that you have profit, don’t let emotions take over your trading. If your position size is large, you can first deal with 80%, and keep the remaining 20% with a protective stop. See whether the room in this stretch of price action can keep expanding. If you didn’t do it, don’t rush—also don’t start randomly chasing just because you see a profit screenshot. The pullback could come at any time. Don’t chase; wait for the next more comfortable spot.

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