IOTA failed growth attempt and went into a steep dive

IOTA failed growth attempt and went into a steep dive

RSGB 2018 Convention lecture: Irish Islands IOTA Tour 2018

Contents

IOTA failed growth attempt and went into a steep dive
CONTENT

  • IOTA has three resistances on the way: 3500b 6500 and 10000

  • Technical indicators on the daily chart are giving bearish signals

  • The price has formed a double top in the short term

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IOTA made another unsuccessful attempt to break above the annual resistance area. The bullish trend will only start after the price rises above this resistance level

Failed breakout attempt

Cryptocurrency trader @ACXtrades said he expects to retest the breakout level at 3,500 satoshi, thus targeting 54% above current price.

IOTA failed growth attempt and went into a steep dive

Source: twitter

However, the price failed to break above the aforementioned resistance area at 3500 Satoshi and instead dropped below the key level again..

This is a bearish sign for two reasons at once: firstly, IOTA was unable to maintain the upward price dynamics; secondly, this is the third unsuccessful attempt to overcome this resistance. Which has existed since September 2019.

However, technical indicators show no signs of weakening yet. Both RSI and MACD are rising without a shadow of bearish divergence.

In case of a bullish breakout, the next area of ​​resistance will be 6,500 and 10,000 satoshi.

IOTA Chart Source TradingView

Double top leads to fall

The daily chart shows a double top formation on Aug 21 and 25, with the latter being accompanied by a very long upper shadow. The double top is a bearish reversal pattern.

IOTA failed growth attempt and went into a steep dive

The rate has been steadily declining since August 25, and technical indicators are giving bearish signals. Both MACD and RSI are declining, but none of them are oversold or formed a bullish divergence.

Consequently, the price must decline to at least the nearest support area at 2800 Satoshi before a correction could possibly begin..

IOTA failed growth attempt and went into a steep dive

IOTA Chart Source TradingView

The short-term chart shows that the previously mentioned 2800 Satoshi support area is also the 0.618 Fibonacci level relative to the entire upward movement, making it a likely place for a reversal.

However, there are no signs of a reversal yet, and the price is moving along the downward resistance line. A breakout from the line will indicate that the IOTA correction period is over and the price may make another attempt to break above 3500 Satoshi.

IOTA Chart Source TradingView

In conclusion, the IOTA rate is aimed at a short-term rebound, but the formation of a bullish trend is possible only after a sustained breakout of the long-term resistance in the 3500 satoshi area..

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