The IOTA Technical Analysis displays a falling trend within a bearish channel, leading the market value to the $0.22 mark. The IOTA price action, the bearish breakout rally of the $0.35 support level, inchoates the shape of a bearish channel. However, the double bottom forming at the support trendline lights a bullish hope. So, will this prolonged correction reach the $0.22 support level, or is a bullish reversal possible?
- The IOTA prices show a bull cycle heating up at the support trendline.
- The double bottom can result in a bullish breakout.
- The intraday trading volume in IOTA is $15.44 million.
Source — TradingView
IOTA Technical Analysis
The IOTA price action displays a post-retest reversal of the $0.35 breakout, accounting for a drop of 17% last month. As per the technical chart, the 50-day EMA moves along with the resistance trendline influencing further bearishness over the price trend. Currently, the price trend displays the lateral move over the support trendline, projecting a possible bullish reversal. Additionally, the price action shows a double bottom pattern with a neckline at the $0.26 mark, which signifies the beginning of a bull market. Therefore short-term traders can expect a long entry opportunity to ride the bull cycle within the falling channel. However, traders hoping for a bullish breakout must wait for the prices to close above the resistance trendline after beating the 50-day EMA. With an intraday growth of 2.17% and more than 16 hours left on the clock, the bullish influence increases over the daily candle. If the buying pressure persists, the 12% bull cycle within the bearish channel can result in a breakout prolonging the uptrend to a 50% jump to $0.37. However, if the buyers fail to restart the bull cycle, a downtrend continuation to the bottom support at $0.22 is possible.
The sideways moving RSI slope under the 14-day SMA in the nearly oversold zone reflects a stronger bearish side ready to crumble the IOTA market value. However, the declining bearish gap between the MACD and signal lines teases a bullish crossover if the double bottom succeeds. Therefore, the technical indicators suggest waiting for a price action confirmation. Resistance Levels — $0.11 and $0.149 Support Levels — $0.10 and $0.08