Jaipur (CoinChapter.com) — IOTA has lost around 25% of its value against the USD, and it now looks “technically sick.” The cryptocurrency market’s U-turn from a recovery rally has further added salt to the wound. Is there any hope for bulls?
The daily chart of the IOTA/USD shows the trading pair staying restricted below the 20-day exponential moving average (EMA) for two weeks now. After June 3, the nascent rally lost steam as sellers showed up to cash out their holdings. Since then, IOTA bulls have not been able to break out beyond the 20 EMA.
What makes the situation even worse is the dip below the 200-day moving average (MA). The recent bullish sentiment revival has not done enough to galvanize buying activity. Amid a market-wide retracement, sellers managed to keep upsides limited for Tangle’s native crypto token.
Read More: IOTA price increases against beaten-down crypto market but there is one danger ahead
The sentiment around the coin is so weak that even after forming a double bottom post the May 19 crash, IOTA bulls couldn’t push up the token higher. A double bottom is a technical setup in which assets undergo bearish pressure twice after attempting recoveries but eventually move up higher with subsequent green candles.
While things may look overly bearish for IOTA, a few things make up for a silver lining. For starters, the pair is trading within a bull flag formation post the double bottom breakout failure. In technical setups, bull flags are generally followed by significant upsides.
Plus, the IOTA/USD pair is entering the classic Bollinger Band squeeze. A sustained Bollinger Band squeeze always leads to a breakout. In this case, the flight could bring prices up north.
RSI (Relative Strength Indicator) at 43.6 and MACD (Moving Average Convergence Divergence) at -0.2 on the daily chart also point to oversold conditions.
For IOTA to experience renewed bullish momentum, buyers would need to push prices past the 20 EMA first and then aim for a breakout above the $1.42 resistance level and flip it into support. After taking out $1.42, if bulls can sustain the upward action and touch $1.5, things for IOTA will genuinely start looking bullish.
The recent Federal Open Market Committee (FOMC) decision, along with some technical cues, could be…
Grand Cayman, Cayman Islands, May 3rd, 2024, ChainwireProtocol launches, growth trajectory, and industry-leading technology point…
EYWA, a consensus bridge that secures transactions across multiple protocols, has raised a total of…
StakingFarm is proud to announce the launch of its groundbreaking Bitcoin liquid staking product, a pioneering…
Rahaman Kargar, founder of Blockchain Asset Management, proudly announces the launch of its blockchain fund tailored…
Trace Labs, the core developers of OriginTrail, has joined the European Union's initiative to foster a…