IOTA continues to trend lower as the cryptocurrency industry has faced several setbacks last week. Against bitcoin, IOTA is in a downtrend channel and is slowly making its way to the bottom after bouncing off the resistance towards the end of February.

Price has bounced off the 76.4% extension but could still have room to head south as technical indicators reflect bearish momentum. The 100 SMA is below the longer-term 200 SMA to signal that the path of least resistance is to the downside. Also, the 100 SMA is close to the channel resistance to add to its strength as an upside barrier, with the 200 SMA serving as the line in the sand in the event of a larger correction.

Stochastic is already dipping into oversold conditions, though, which means that sellers are exhausted and buyers could get the upper hand. RSI has some room to head south so selling pressure could stay in play for a bit longer.

Against the dollar, IOTA is also trending lower and could have more room to slide. Price just bounced off the top of its channel and broke below a symmetrical triangle consolidation pattern.

The 100 SMA just crossed below the longer-term 200 SMA to indicate stronger selling pressure. These moving averages are also close to the top of the channel to add to its strength as resistance.

Stochastic seems to be crossing down once more to signal a return in bearish momentum. RSI, on the other hand, is on the move up so a correction to the broken support at 1.5000 could be in order.

Applying the Fib extension tool on the latest pullback action shows that price is currently testing the 50% level. Stronger selling pressure could take it down to the next floor at 1.07239 at the 61.8% extension or the 76.4% extension at 0.79272. The full extension is located at 0.34064 closer to the channel support.


Tags: , , ,

Leave a Reply