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Theprice is possibly in the beginning phase of a bullish reversal. In the short-term, the price is likely to trade in a range between 2300-2500 satoshis — accumulating prior to the upward movement.
On December 25, the IOTA price began an upward move that is still ongoing. The price has increased by 15 percent since and completed a short-term reversal pattern.
Well-known trader @devchart stated that the IOTA chart is one to keep an eye on, due to the breakout attempt that is currently transpiring.
Keep an eye on #IOTA too. Attempting breakout.
— Devchart (Andre) (@devchart) January 5, 2020
Will IOTA break out? If so, where will it go? Let us know your thoughts in the comments below.
The IOTA price has been decreasing since late 2017. However, it has moved above two long-term descending resistance lines — even though these movement has been very weak, both in volume and magnitude.
Also, IOTA seems to have created a double bottom at 2100 satoshis. Combining this with the breakout above a long-term trend-line, we can assume that the IOTA price will continue moving upward.
The double bottom has been combined with a bullish divergence in both the RSI & the MACD (longer-term in the MACD). A bullish pattern with such a long-term divergence often indicates a price reversal.
The double bottom would be confirmed with a price movement above 3500 satoshis, with the next resistance areas being found at 4500 and 6400 satoshis, respectively.
However, this is still a speculative suggestion, since the three current weekly bullish candles are easily contained within the body of the previous bearish engulfing candlestick — meaning this movement could just be a retracement in response to the prior decrease.
The daily outlook reveals two things:
Looking closer at the short-term double bottom, we can see the nearest resistance area near 2300 satoshis — which is outlined in the tweet. Since then the price has broken out and validated it as support afterward.
Additionally, the full height of the double bottom gives a target of 2500 satoshis — right at the next minor resistance area.
Due to the strong long-term MA resistance, we do not think the MIOTA price will immediately move above this area. Rather, it would be more likely for the price to consolidate between 2300-2500 satoshis and create a price structure, from which it would break out afterward.
To conclude, the IOTA price is likely in the initial stages of a long-term upward move. In the short-term, we believe it will trade in a range between 2300-2500 satoshis.
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