IOTA appears to be completing a reversal pattern on its 4-hour time frame and could be due for a move to the extension levels next. Price is in the process of forming the right shoulder of its inverse head and shoulders and the neckline is located at the 50% extension or 2.0000 major psychological level.
The chart pattern spans 1.4000 to 2.0000 so the resulting breakout could be of the same height. The 61.8% extension is located at 2.0781 and the 78.6% extension is around 2.2000. The full extension is at 2.3373.
However, the 100 SMA is below the longer-term 200 SMA so the path of least resistance is to the downside. This suggests that the selloff is more likely to resume than to reverse. Then again, the gap between the two is narrowing to reflect slowing bearish pressure.
RSI is turning higher to show that buyers are regaining control. Stochastic is also making its way out of oversold levels to signal a return in bullish momentum that might be enough to confirm the reversal pattern.
IOTA just released Qubic which is a new protocol layer that will assist users in special computational powers such as oracle machines, quorum-based computations, outsourced computations and the smart contracts that are on the network. According to its development team, this would enable:
A way to safely communicate with the outside world in a trusted environment;
A powerful, distributed fog computing platform for building complex IoT applications;
A new type of smart contract, which collects micro-payments in real time as it runs;
A reward system for incentivizing honest participation in the Tangle.
In other words, this would offer great incentives for anyone who wishes to run a node. They also clarified that the project is still under development and that it is not a new token or coin and there won’t be any Qubic ICO or airdrop.