IOTA has made a strong recovery after last week’s major corrections as bulls are reopening their long positions. Profit-taking must have weighed on price action ahead of the Thanksgiving holidays but the increased interest in cryptocurrencies has driven IOTA back up.
Against bitcoin, IOTA has bounced off the area of interest around 0.00007500 and has breached the swing high. Price is testing the 61.8% extension at 0.00012 and seems to be showing a bit of hesitation.
Stochastic is already indicating overbought conditions after all while RSI is closing in. If buyers allow sellers to take over from here, IOTA could retreat back to the nearby areas of interest before getting back on its feet. The 76.4% extension is at 0.00013 then the full extension is at 0.00015.
The 100 SMA is still above the longer-term 200 SMA on this chart so the path of least resistance is to the upside. The 200 SMA has recently held as dynamic support on the pullback and could continue to keep losses in check.
Against the dollar, IOTA is also on a tear and is testing the 76.4% extension. Stronger bullish momentum could take it up to the full extension at 1.3256.
The 100 SMA is also above the longer-term 200 SMA on this chart to indicate that the path of least resistance is to the upside. Profit-taking off the resistance levels could merely lead to quick pullbacks to the areas of interest at 1.00475 or the 100 SMA dynamic support at 0.8000.
Stochastic is also indicating overbought conditions for IOTUSD while RSI is just behind. Turning lower could draw selling pressure back in if buyers need to take a break at these levels.
The weaker inflation outlook for the US has driven the dollar mostly lower against its peers, along with risks related to tax reform. Sentiment is positive so far but the Senate vote could still have some headwinds, and there’s also the daunting task of merging their version with that of the House.