- IOTA token has been resting at the long-term demand zone for the past couple of days and is facing rejection of the green trendline acting as a supply zone.
- The IOTa token price is forming a descending triangle pattern on a daily time frame.
- The pair IOTA/BTC is trading at 0.000013 with a decrease of -0.30% in the past 24 hours.
IOTA token price is following the recent trend of the overall cryptocurrency market for the last 3 days. IOTA token price is showing bullishness as it bounced off the long-term demand zone of $0.2300.The token formed a big bullish candlestick pattern at the demand zone which pushed the price up sharply. At present, the token is trading below the vital Moving Average(50,100). IOTA token price tried to surpass the important 50 and 100 MA but failed and again fell to the demand zone.
The IOTA token price is trading at the upper band of the Bollinger band indicator. The token price tried to break the upper band of the Bollinger band indicator but failed. Although, the token has given a breakout of 20 EMA, indicating a short-term bullishness. Volumes have increased causing the volatility to also increase. This can result in a sharp move on either side. Investors should not get carried away by the short-term bullish momentum and wait for the proper reversal sign or further break down and then act accordingly.
RSI and ADX have been supporting the short-term bullishness momentum
IOTA token price, as per the price action, is trading at the demand zone, and technical parameters are giving bullish signals on a daily time frame.
Average Directional Movement Index: ADX has slipped below the 35 mark as time fell off the supply zone.Although, the ADX curve has turned upwards as the IOTA token price showed some bullishness in the past trading days. If the IOTA token price hives break out of the green trendline the ADX curve can be seen rising sharply, supporting the breakout. Until then investors should wait for a clear trend.
Relative Strength Index: As the IOTA then the price moves higher, the RSI curve is also seen rising. The recent bullishness resulted in the RSI curve crossing the halfway mark of 50. At present the RSI curve has crossed the 14 SMA, therefore the token can maintain the bullish trend for the upcoming trading days. Investors should plan trades accordingly.
IOTA token price forms Descending triangle despite the recent bullishness, will it give a breakdown?
Source: IOTA/USDT by tradingview
IOTA token price, as the technical parameters suggest, is indecisiveness as of now, therefore a clear trend is needed before indulging in the IOTA token.
Moving Average Convergence Divergence: MACD Indicator showed a bullish momentum as the blue line jumped off the orange line. As the IOTA token price bounced off the demand zone, the indicator supported the trend. If the token gives a breakout for the supply zone trendline, the MACD line could be seen widening supporting the trend.
Supertrend: Despite the recent bullishness in the IOTA token price, the super trend indicator is showing a bearish trend. The IOTA town price can face rejection of the super trend sell line moving upwards, therefore a strong bullish momentum can be seen only when the IOTA token price breaks the super trend sell line with a strong bullish candlestick formation.
IOTA token price as seen on daily time frame is showing a bullish trend while technical indicators are seen as indecisive. Investors should wait for the breakout of the black trendline acting as a strong supply zone. This could result in the reversal sign if the breakout is supported by a strong increase in volumes. It remains to see if the bulls help the token break the supply zone or if bears take control and pull the price down.
SUPPORT: $0.2300 and $0.2350
RESISTANCE: $0.3100 and $.03250
The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not abolish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.