The post TAO Technical Analysis Feb 1 appeared on BitcoinEthereumNews.com.

TAO’s volume story indicates weakening market participation in the downtrend. While high-volume sales signal distribution, oversold RSI and volume divergence carry accumulation potential. Volume Profile and Market Participation TAO experienced a 7.79% drop with $233.38 million in trading volume over the last 24 hours, falling back to $199.90. Although this volume level is above the 7-day average volume (around $180-200 million), it stands out in the bearish short-term trend where the price remains below EMA20 ($235.38). The volume profile shows concentration around Value Area Low (VAL) (around $195-200) with increasing volume during recent declines. Market participation is weak; volume stays low during upticks but rises during downticks, which increases the conviction of selling pressure but indicates that institutional buyers have not yet entered. In the Volume Profile, Point of Control (POC) has shifted to $210, meaning sellers are dominant but buyers are testing this level. For a healthy rally, volume must increase during upmoves; the current low participation suggests the trend is tiring. Accumulation or Distribution? Accumulation Signals As RSI approaches the oversold region at 30.49, price-volume divergence is evident: volume increases during recent declines, but the momentum histogram (MACD negative) is weakening. This could be an accumulation signal similar to a ‘spring’ pattern; large players are absorbing low-volume sales. MTF volume levels (1D/3D/1W with 10 strong levels: 2S/1R 1D, 1S/3R 3D, 2S/3R 1W) show volume increases at supports ($178.70, score 74/100). If volume stabilizes here, we can say accumulation is starting – whales are defending the supports. Distribution Risks Volume rising to confirm the downtrend is a distribution warning: the 24h volume spike confirms the 7.79% drop, with strong Supertrend resistance at $248.79. High-volume downticks may indicate institutions closing positions. The downward shift in POC and volume increases at resistances ($219.82, score 62/100) keep seller conviction high. If distribution…

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Filed under: News - @ February 1, 2026 4:23 am