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IOTA Technical Analysis: Descending Trendline Governs The IOTA price

source-logo  cryptoknowmics.com 28 February 2022 11:20, UTC

Under the influence of this descending trendline, the IOTA coin price lost 32% over fortnite hitting the $0.68-0.6 support. The IOTA buyers failed their second attempt to breach the high swing resistance of $3.42 on Feb 16th. Amid the intense sell-off in the crypto market, the coin chart formed six consecutive red candles, which tumbled the altcoin by 27.5%, bringing it to $2.44. However, the long-tails candle at this support hints the buyers are defending this level with vigor. Can bulls follow up on this rejection, or bears continue their correction?

Key technical points:

  • IOTA price obtains strong support from 20-day EMA
  • The 24-hour trading volume in the IOTA coin is $43.6 Million, indicating a 19.7% rise. 

Past Performance of IOTA

The IOTA/USDT technical chart displays a descending triangle pattern in the daily time frame chart. The pattern's descending trendline started way back from April 2021 top. Since then, the price action has respected this resistance and $0.6 neckline support. Amidst the January bloodbath and geopolitical issue, i.e., the Russia-Ukraine war, the pair has tumbled by 50% from the beginning of 2022, bringing it to $0.6 support. TradingView Chart Source-Tradingview

IOTA Technical Analysis 

The IOTA price trades at the $0.73 mark by press time, indicating an 18% gain from $0.6 base support. Furthermore, the buyers attempt to breach the descending trendline, which would be the first signal to recovery. The IOTA chart shows a bearish sequence among the crucial EMAs(20, 50, 100, and 200), indicating the path to least resistance is downward. These downsloping EMAs suggest the traders are selling aggressively. The MACD indicator shows the fast and slow lines were on the verge of giving a bullish crossover, providing an extra edge for a bullish reversal. The daily-RSI Indicator slope reverted before entering the oversold territory. Following rally has reclaimed the 14-SMA and is now steadily approaching the midline. In a nutshell, the MIOTA technical analysis has started providing a reversal signal, bolstering a bullish reversal.

Upcoming Trend

If IOTA bulls breakout and gives daily candle closing above the resistance trendline. The buyers would drive altcoin by 40%, reaching the swing-high resistance of $1. The following breakout would intensify the buying momentum; however, the descending triangle trendline is critical to signal a trend reversal.   Support Levels: $0.83 and $1 Resistance Levels: $0.6 and 0.4

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