- IOTA is now experiencing friction after the recent breakout in price
- The token with a market dominance of 0.14% saw a market correction by almost 63%
- The current market price is now in the middle of its one-month high and low range
IOTA, a 48th ranked token, has been under the unexpected bearish cloud. In the same week, it has experienced two big dips and one of them comes after a promising climb. The IOTA/BTC and IOTA/ETH pairs stay unaffected with an intraday increment of almost 7.5% in each of their prices. The market capital of IOTA is staying positive with an increase of 6.7%, and the volume/market cap comes out to be 0.05786.
To support the recent variation, one may observe the obvious pattern highlighted in the box in the chart’s image above. Firstly, the presence of the “three black crows” pattern at the start and in the end, and secondly, the occurrence of bullish engulfing right in the middle. This proves that even after the first fall, the token tried recovering by failed to do so.
After considering the paths of moving averages, it is crucial to notice that even after the second fall (refer to the highlighted zone), the 20 MA line stayed on an upclimb for most of the time frames. Now the direction has changed to a downward direction, and the CMP is now between 20 and 50 MA lines.
One peculiar behavior that we can learn from the steady climb of the 100 MA line is that even after the recent dip in the value, the current price is still greater than earlier when IOTA seemed to be ‘stable’. One can derive from all this that the token may not break the 20-daily line barrier, but the steady 50 and 100 MA lines’ climb may help IOTA stabilize in the future.
IOTA stays neutral in terms of Buying and Selling
After observing the 4-hour time frame chart, the MACD gives out a hint of holding or buying period due to the converging climb of the MACD line over the signal line. The RSI level also states that IOTA is currently in the neutral zone. Resistance can be drawn at $1.6356 and $1.4301 and IOTA is going to get support from $1.2247.
Conclusion- IOTA may seem to be underperforming and shows potential to be stable with less volatility in the future. Furthermore, there are also chances for market corrections but holding on to the asset would help minimize the losses.
Resistance- $1.6356 and $1.4301
Support- $1.2247