IOTA (IOTA) seems to be mired in a long-term correction, and could break out after a period of consolidation.
IOTA has been decreasing alongside a descending resistance line since Sept 4. More recently, the line caused a rejection on Dec 30 (red icon).
This led to a low of $0.69 on Jan 24. The price has been moving upwards since.
Currently, it is trading inside the $1.05 area, which had previously acted as support since Sept 27. Now, the area is expected to act as resistance once more.
The aforementioned descending resistance line is currently at $1.10.
Technical indicator readings
Technical indicators for IOTA in the daily time-frame are relatively bullish, since both the MACD and RSI are increasing.
More importantly, the RSI has moved above 50. The RSI is a momentum indicator and the 50 line is considered a threshold for a bullish/bearish trend.
While the MACD is moving upwards, it has not yet crossed into positive territory. This would go a long way in confirming the bullish trend.
The $1.08 resistance area, which is created by the 0.382 Fib retracement resistance level coincides with the previously outlined horizontal resistance area. Therefore, its reclaim would be a major bullish development.
IOTA wave count analysis
Cryptocurrency trader @Thetradinghubb tweeted a chart of IOTA, stating that the price is consolidating inside what is likely a fourth wave triangle.
The most likely wave count does suggest that IOTA is in wave four of a five wave upward movement, which began on March 2020.
On July 2021 and Jan 2022 (green icons), the token bounced at the middle of a parallel channel connecting waves one and two. This effectively completed a fourth wave pullback, supporting the possibility that IOTA is still in wave four.
If correct, the aforementioned Jan 24 low should not be breached. Rather, after a move towards $1.55 and a period of consolidation, IOTA would be expected to break out and move towards new highs.
For BeInCrypto’s latest Bitcoin (BTC) analysis, click here
Disclaimer
All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
