IOTA is currently trending lower to the dollar and is testing the resistance at the 1.6000 mark. This is the top of its descending channel on the 4-hour time frame. Keeping gains in check could allow IOTA to fall to the channel support around 1.0000.
The 100 SMA is below the longer-term 200 SMA to confirm that the path of least resistance is to the downside. This means that the selloff is more likely to continue than to reverse. In addition, the 200 SMA lines up with the channel resistance and is holding as a dynamic inflection point.
Stochastic is pulling up from oversold levels, though, which suggests that buying momentum could strengthen. RSI, on the other hand, is on the move down to indicate that sellers still have the upper hand.
Dollar demand kicked higher in recent trading sessions after risk aversion returned to the markets. There are still doubts about the impact of tightening on the US economy, which might limit business and consumer activity, thereby outweighing the positive impact of tax reform.
Against bitcoin, IOTA is in consolidation mode. Price has formed higher lows and lower highs, creating a symmetrical triangle formation. Price is testing the top of the triangle and might be due for a move back to support soon.
The 100 SMA appears to be making an upward crossover to indicate that a bullish breakout is possible. Either that or the moving averages are just oscillating to indicate further consolidation.
Stochastic appears ready to turn higher and take IOTA along with it. RSI is treading sideways as the consolidation continues, so a move back to the 0.0002 level could be underway.
Bitcoin has gotten a bit of a boost from news that US financial regulators are looking to increase oversight on the cryptocurrency without hampering development. Analysts also say that it’s about time for a correction from the recent selloff, and a significant return in bullish pressure could be enough to turn this pullback to a rally.