Elliott Wave Analysis is based on dividing the price movement into upward and downward waves, which helps in predicting future trends. Based on the previous image, we will try to make an assumption about Elliott Waves, but it must be noted that applying Elliott Waves requires a clear view of the price movement over a long period to analyze it more accurately.
Analysis based on Elliott waves:
1. Impulse Waves - Up:
If the general trend of the currency is upward, these waves may be as follows:
Wave 1: It started from the lowest point around 272.7 USDT and reached the first peak at a level close to 350 USDT.
Wave 2: Corrective down, returned to support level near 310-320 USDT.
Wave 3: This is the strongest and usually the longest, starting from 310 USDT and targeting higher levels such as 387.8 USDT (it may have been completed or close to completion).
Wave 4: Corrective wave, may return to test 350 USDT support before completing wave 5.
Wave 5: Upward wave targeting higher resistance levels, may reach 400-420 USDT if the upward momentum continues.
2. Corrective Waves - Bearish:
After the completion of the fifth wave, the correction begins in the form of ABC waves:
Wave A: Initial drop may reach 350 USDT.
Wave B: Slight bounce to the upside (may reach 370 USDT).
Wave C: The final corrective wave which may take the price back to stronger support levels like 320 USDT.
Predictions based on Elliott Waves:
If the 5 Waves pattern is completed: We are likely to see an ABC corrective move after reaching a strong resistance.
If the third wave is not completed yet: the rise may continue to reach 400 USDT before the correction starts.
comments:
Price action must be followed to confirm these waves, as Elliott waves are flexible and may change based on trading volume and momentum.
It is preferable to use auxiliary indicators such as RSI and MACD to confirm entry and exit points, especially at the end of the third wave or the beginning of the corrective wave ABC.
Warning: Elliott Wave Analysis requires experience and high accuracy in drawing and analysis, and it is best to confirm it with other indicators to ensure the validity of the analysis.