Home / Analysis / Crypto / Technical Analysis / TIA and TAO Prices In Sync – Does TAO Reclaim Mean TIA Correction is Over?

TIA and TAO Prices In Sync – Does TAO Reclaim Mean TIA Correction is Over?

Published April 23, 2024 3:22 PM
Valdrin Tahiri
Published April 23, 2024 3:22 PM
By Valdrin Tahiri
Verified by Peter Henn

Key Takeaways

  • The TIA and TAO price recovery is eerily similar in price action and indicator readings.
  • TAO has reclaimed a 77-day support, while TIA is reclaiming a 132-day support area.
  • Will the TIA price continue following TAO and reclaim its support, or will the symmetry break?

TIA and TAO enjoyed massive increases to end 2023. TIA increased by 1,000%, while TAO beat that with a 1,500% rise. In turn, their corrections have both been sharp, amounting to decreases over 60%.

Comparing the price recoveries of TIA and TAO reveals similarities in their recent movements and indicators. This prompts an important question: Will TIA’s trajectory follow TAO’s, indicating the end of its correction?

Similarities Between TIA & TAO

The price action between TIA and TAO is nearly identical. More specifically, the similarity comes from the shape of the recovery after the correction that started in March.

TIA & TAO Price Similarities
Custom Daily Chart | Credit: TradingView

At first, TIA and TAO fell below the 0.618 Fibonacci retracement support level. However, they bounced almost immediately afterward (green circle) and have increased since.

 

After a breakdown, a support level often turns to resistance. However, this has not been the case in neither TIA nor TAO. If the reclaim is successful, the previous breakdown will be considered a deviation.

TAO has already reached a close above its main horizontal area, while TIA is aiming to do so. This is a sign that the correction is over, and the price will not make another low.

TIA Price Prediction: Correction Is Likely Over

Before the breakdown on April 11, TIA had traded above the $11.50 horizontal support area for 132 days. So, the breakdown from it was expected to instigate a sharp fall. Contrary to expectations, things unfolded differently. The TIA price regained its footing on April 13 and has increased since.

The wave count aligns with the ongoing reclaim. After a five-wave increase (white), TIA completed a W-X-Y correction, where waves W:Y had a 1:1.61 ratio. They were both contained inside descending parallel channels.

Alongside the reclaim of the $11.50 area, TIA also broke out from its parallel channel. Moreover, the daily RSI broke out from its resistance trend line (green) and is now increasing above 50.

TIA Price Correction Over
TIA Daily Chart | Credit: TradingView

All these signs point to the correction being complete, leading to the start of another bullish upward movement.

While this rally is likely to lead to a new all-time high, the first resistance is at $18, 55% above the current price.  The area is expected to cause a reaction, and a close above it will confirm that a new upward trend has started.

This bullish prediction will be rendered invalid with a close back inside the confines of the channel. Currently, this seems unlikely.

TAO Price Reclaims 77-Day Support

The TAO price is further along in its recovery compared to TIA. This is because TAO already reached a daily close above the main resistance area at $500. The area had previously acted as support for 77 days. So, its reclaim means the previous breakdown is invalid.

Similarly to the price, TAO’s daily RSI has yet to break out from its descending resistance trend line (green). So, while the reclaim of horizontal support is a bullish development, the trend will be confirmed once TAO breaks out from its resistance trend line, causing the RSI to do the same.

TAO Price Reclaims Long-Term Support
TAO/USDT Daily Chart | Credit: TradingView

The wave count for TAO is almost identical to TIA. After completing a five-wave increase (white), TAO finished an irregular A-B-C corrective structure (black).

If the correction is over, TAO’s next upward movement will take it to a new all-time high. However, there is resistance at $725, likely to cause a temporary rejection.

May Expected to Bring TIA & TAO Gains

Price fractals are interesting patterns in assets, when the price of one follows the others. There seems to a be a fractal in which the TIA  and TAO price have corrected and recovered in an extremely similar manner. Since TAO already reclaimed its main resistance area, TIA doing the same will mean its correction is over.

Was this Article helpful? Yes No