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

📌 TAO/USDT Elliott Wave & Fibonacci Analysis: A Deep Dive 🚀🔹 Market Structure OverviewThe 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 LevelsThe 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 & MomentumMACD 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 ReversalPotential for a Deeper C-Wave DropInstead of an immediate breakout, the market may still be completing an ABC correction.Wave C targets:100% Fibonacci Extension: $160.61.236 Fibonacci Extension: $111.9Potential Max Extension: $89.5 (1.382 Fib)Indicators Supporting a Further DeclineMACD 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.📌 ConclusionIf $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.