Technical Analysis

TARS technical analysis: Can TARS sustain the breakout rally?

Published: Sep 27, 2024

TARS is a relatively young asset, just 148 days old, but we’ve already seen a clear support level of around $0.1. This has acted as a floor during a consolidation period where the asset was range-bound.

Disclaimer: This is not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results.

The key level to watch now is $0.1545, which has been respected multiple times. After testing and holding this level, we’ve seen a solid breakout. TARS is still 82% down from its all-time highs, meaning there’s plenty of room for movement.

Structurally, TARS has broken out of two diagonal resistance levels:

The first is from the June high to the July swing high.
The second is from the June high to the August swing high.

Both of these trendlines have been cleared, which is a positive signal.

4. TAR-SOL daily chart showing a breakout from descending resistance trendline, with 81.64 potential price increase towards key targets.

Playbook

Bid the Breakout: If you have a conviction in TARS, bidding the breakout could be a strong move. Momentum is here, and with the diagonal resistance cleared, sellers are likely exhausted at these levels.
Wait for a Retracement: For a more conservative approach, you can wait for a potential retracement to the $0.1545 level. If this flips from resistance to support and holds, it can act as a new floor for future price action.

This breakout is key because, as we know, resistance is where sellers have previously stepped in. Once resistance breaks, it’s a sign that sellers have stepped aside, allowing buyers to push the price higher. There’s room for more upside here, but how this level holds in the next few days will be critical.

Note: This is a technical analysis and not an investment recommendation. We are not personally invested in TARS, and this is purely for educational purposes to help members understand potential strategies.

Cryptonary’s take

TARS is showing clear bullish signals after breaking two key resistance levels. While it’s still far from its all-time high, this breakout opens the door for further upside. Whether you’re a breakout trader or waiting for a pullback, TARS offers opportunity, but patience will be key. If the $0.1545 level holds, we could see the next leg up, but as always, managing risk is essential. Keep a close eye on how the price reacts in the coming days.