TAO/USDT Weekly Elliott Wave & Fibonacci Analysis
2025-02-06
Category: None

📌 TAO/USDT Elliott Wave & Fibonacci Analysis: A Deep Dive 🚀 

 🔹 Market Structure Overview 
The TAO/USDT chart exhibits two potential Elliott Wave scenarios:

A completed Wave 2 correction leading into an impulsive Wave 3.
An ongoing ABC corrective pattern before a bullish move.
Using Fibonacci retracements, extensions, volume trends, and momentum indicators (MACD, RSI), we can refine both scenarios.

 🔹 Scenario 1: Impulsive Wave 3 Towards $1,532.5+ 
Wave 3 Expansion & Fibonacci Levels
The price has retested 0.786 Fib support ($226.3), a historically strong level for a wave reversal.
Wave 3's minimum projected target is $1,532.5 (1.236 Fibonacci extension).
If momentum builds, the 1.618 extension ($2,729.5) could be reached, aligning with strong historical price expansions.
Market Behavior & Momentum
MACD Analysis: A bullish crossover in the MACD histogram would confirm momentum shifting toward an impulsive move.
RSI Trends: RSI stabilizing above 50 would indicate growing buyer strength, supporting the bullish outlook.
Volume Dynamics: Increasing volume at key support levels suggests institutional accumulation.

 📌 Confirmation Zone for Wave 3: 
A sustained breakout above $740 (recent high) would confirm the beginning of Wave 3.

 🔻 Scenario 2: ABC Correction Before Reversal 
Potential for a Deeper C-Wave Drop
Instead of an immediate breakout, the market may still be completing an ABC correction.
Wave C targets:
100% Fibonacci Extension: $160.6
1.236 Fibonacci Extension: $111.9
Potential Max Extension: $89.5 (1.382 Fib)
Indicators Supporting a Further Decline
MACD remains bearish, suggesting downside continuation before a reversal.
RSI is not yet at oversold levels, meaning further weakness is possible.
Volume profile shows a lack of aggressive buying, indicating sellers still have control.


 📌 Key Reversal Zone for the Next Bullish Cycle: 
If the price drops to the $160.6-$111.9 range, a strong bounce could follow, leading into the next impulsive wave.


 📌 Conclusion 
If $226.3 holds, it strengthens the case for an impulsive Wave 3 move towards $1,532.5+.
If support fails, a final correction to $160.6 or even $111.9 is expected before a strong upside reversal.
Volume and momentum indicators will be crucial in confirming the next major move.
This analysis provides a structured view of potential Elliott Wave formations and Fibonacci-based price levels, giving clear insights into TAO/USDT’s possible market direction.