IOTA has seen a small +1.96% increase in price over the past 24 hours of trading. The cryptocurrency is currently exchanging hands at a price of $0.6035 bringing the total 7-day price increase to +5.01%.
What’s been going on?
IOTA has been creating a lot of headlines recently. From their recent collaboration with Volkswagon to their first Tangle Service Node going live this week. More so, IOTA has recently tested a service which will allow customers to charge their electric cars and pay in IOTA in the Netherlands.
Where is IOTA currently ranked?
IOTA is currently ranked in 12th position in terms of overall market cap across the entire industry. It currently has a market cap value of $1.68 billion after the cryptocurrency suffers a precipitous -40% price drop over the past 90 trading days. IOTA is currently trading at a value that is 88% lower than its all time high price.
Let us continue to analyse price action for IOTA over the short term and update our support and resistance targets.
IOTA/USD – SHORT TERM – DAILY CHART
A brief catch up
In our last analysis, price action was trading at the support provided by the downside 1.414 Fibonacci Extension level priced at $0.6954. We had stated that if price action would break below the support level we would expect immediate support to be located at the $0.60 handle followed by the $0.50 handle and the 1.618 Fibonacci Extension level priced at $0.3908.
So what actually happened?
We can see that as September 2018 started to trade, price action dipped below the expected support and continued to fall until further support was found at the expected $0.50 handle.
Where are we now?
Price action has since rebounded slightly until resistance was met at the $0.60 handle where it is currently trading.
Where can we go from here?
If price action can continue with this recently established bullish momentum and push the market above the resistance at $0.60 then further resistance can be expected at the 1.414 Fibonacci Extension level priced at $0.6954.
If the bulls can continue even further higher, we can expect more resistance at the previous swing high priced around $0.8145. This area of resistance will require significant momentum to overcome due to the 100 day moving average bolstering the expected resistance in this area.
Further resistance expected above can be located at the 1.272 Fibonacci Extension level priced at $0.90 followed by the long term .886 Fibonacci Retracement level priced at $1.02.
What if the bears regain control?
Alternatively, if the bears regain control of the momentum within the market and push price action lower we can expect immediate support to be located at the $0.50 handle. We can see that this price level has provided significant support during September 2018 and is expected to continue to provide support moving forward.
Further support located below this level can then be expected at the downside 1.618 Fibonacci Extension level priced at $0.39.
What do the technical indicators read?
The technical indicators within the market have recently swung into the favour of the bulls. The RSI is above the 50 handle, indicating the bulls are in control of the momentum within the market. If the RSI can continue to remain above 50 we can expect the bullish momentum to persist.
Let us continue to quickly analyse price action over the short term and update our support and resistance areas.
IOTA/USD – SHORT TERM – 4HR CHART
What’s been going on over the short term?
In our last analysis, we had outlined the symmetrical triangle formation that was in play. We can see that as September began trading, price action plummeted below the lower boundary of the triangle. The market continued to drop until finding support at the short term .886 Fibonacci Retracement level priced at $0.5019.
As the market approached this level it found support and reversed. We can see that price action has now rallied into resistance provided by the .5 Fibonacci Retracement level priced at $0.6361.
Where can we go from here?
If the bears regain control of the momentum, we expect immediate support at the .618 Fibonacci Retracement level priced at $0.5951. Further support below this can then be expected at the .886 Fibonacci Retracement level priced at $0.5019.
Alternatively, if the bulls can push price action above the resistance at $0.6314 then further resistance above can be expected at the .382 Fibonacci Retracement level priced at $0.6717. If the bulls can persist higher, further significant resistance can then be expected at the recent swing high at $0.80.