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IOTX, the native token of the platform IOTEX, after creating an all time high of $0.2598, has been in a downtrend since 2021. At present the price is sitting at daily support which is a crucial level.
- IOTX/USDT has been trading with bearish price action since last year
- IOTX/USDT broke out of a descending triangle which has pushed the price further down
IOTX price is trading at $0.01702 after breaking an important support of $0.02100 in the daily time frame. The price action formed a descending triangle which is a bearish continuation and the price broke out of it on 9th June.This breakdown was followed by intense selling which led the price to fall to its support at $0.01606.
Daily chart shows overall Bearish trend
On the daily chart, IOTX/USDT can be seen following a bearish trend. As you can see, the level of $0.02100 became a significant support as buyers tried to push the price every time it came near this level. Eventually, the bulls couldn’t hold this level and the bears finally breached the support which led to a downfall of 22%.
The overall trend is extremely bearish and the price is trading just above the support. A further downside can be expected towards the next support level at $0.01292. Price is trading below the daily 9,15,200 EMA which makes it difficult for the bulls to take any positions.
Short Term Charts show a moderate bounce
The 4H Chart is showing a bear market where the price keeps on making lower lows and the bears are capitalizing over this condition. After the last few days of volatility, the price is expected to consolidate for some time. This consolidation can be seen as a minor pullback in this strong downtrend.
On the upside, if the bulls try to take control and push the price high, the first hurdle will be at $0.02100 along with 200 EMA. It will be difficult as there is sell pressure in the market. Therefore investors must be careful and try to watch out for more confirmations before making any buying decisions. However, some investors are looking at this situation as an investment opportunity.
RSI: The RSI indicator is currently at 33.65 and the RSI has crossed the MA line towards the downside which is indicating a probability of a downward move.
MACD: The MACD indicator briefly made a bullish crossover but is already losing momentum and is about to cross in the downward direction.
200 EMA: As it is observed, on the 4hr, the price is trading below the 200 EMA(exponential moving average) which acts as a significant resistance. This is a clear indication of a downtrend where the sellers are in control and in order for a trend reversal, the price must break and trade above the 200 EMA.
Technical levels
Support Levels: $0.01606 and $0.01292
Resistance Levels: $0.02100
Conclusion
IOTX/USDT is trading in a Bearish price action over the last year. At present the price is trading above an important daily support. All the technical indicators suggest a strong downtrend and a high probability of further downfall. The level of $0.01606 is crucial support. In case of a breakdown, the price can move down towards $0.01292 which is 18.32% down. A shift of momentum can only be observed if the price manages to break resistance and trade above 200 EMA.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
