The IOTA (IOTA) price is trading inside a long-term resistance area, a breakout above which could trigger a rapid increase.
However, the price has fallen into a bearish pattern, and technical indicators are showing weakness, making a rejection much more likely.
IOTA Faces Resistance
The IOTA price is currently trading inside the $0.245 resistance area. This area is extremely important since it acted as support for the majority of 2019 before the price eventually broke down. Therefore, an increase above this level could cause the continuation of the current upward move at an accelerated pace. Before beginning the current upward movement, IOTA generated some bullish divergence in the weekly RSI. However, the current weekly candlestick is shaping up to be a shooting star, as the long upper-wick pierced this resistance area. If the price fails to close above, it could be a strong sign that the upward trend has already ended and IOTA has begun a correction.
Evening Star Pattern
The daily chart looks even more bearish. The price has created a double-top pattern, which is combined with bearish divergence. Furthermore, the second bottom has taken the form of an evening star pattern, which is another bearish pattern in itself. While the price is still trading above its 200-day moving average (MA), a decrease below it could trigger a rapid downward movement, with a possible bounce at $0.21. If the price decreases the entire height of the pattern, it could drop all the way to $0.145.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.
(I do not have a discord and will not contact you first there. Beware of scammers)
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.
(I do not have a discord and will not contact you first there. Beware of scammers)
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