What Elliott wave theory tells us on the MicroVisionChain chart at 01/02/2024
MicroVisionChain has been working well according to Elliott wave theory since its launch, following Elliott wave theory. It formed a simple impulsive wave 1, followed by a complex wave 2.
On October 19, we initiated wave 3, which peaked on November 23.
Following that, we experienced corrective wave 4, which, due to its characteristics, does not enter the territory of wave 1 unless in diagonal leading and espanding types, this characteristic was also well respected in this asset.
What to expect now and where to gain a position for a good trade?
At this moment, the asset appears to be forming a wave 1 within wave 5 in the shape of a leading diagonal.
So, I expect the asset to complete wave one, possibly hitting the order block between $24/$26, clearing all liquidity, and then correcting before initiating wave 3 of this wave 5 before a larger correction.
For now, we anticipate the liquidity capture to materialize to confirm the analysis. After correction, we may see the price between $20 and $21 again before delivering a new high.
Aspects to consider:
Given that wave 3 is never the smallest wave, wave 5 could be truncated, closing at its peak before correcting again.
However, wave 1 is where the asset was launched, so we should not pay too much attention to that rule. As a result, a wave 5 may surpass the previous peak and establish a new all-time high (ATH).
In this regard, to guide the trade, we should be attentive to fractals or set the take profit at the top of wave 3.
Nothing here is an investment recommendation, always do your own analysis.
Be aware that investing in financial markets carries serious risks of losing your capital!
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