Technical analysis by WaveFibs about Symbol TAO: Buy recommendation (2/6/2025)

📌 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.