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IOTA Signals A Long-Term Trend Reversal

2 mins
Updated by Ryan Smith
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In Brief

  • IOTA is facing resistance at 5,830 and 10,100 satoshis.
  • The weekly RSI has formed considerable bullish divergence.
  • The price is correcting inside a short-term descending channel.
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The IOTA price has been consolidating near 2000 satoshis since August 2019. The price has been showing strong signs of a reversal, indicating that a bullish trend may soon begin.

Weekly Analysis

The weekly chart for IOTA reveals that the price has been decreasing since September 2018. While the decline was initially rapid, it has since gradually decreased. The price reached a low near 2000 satoshis in August 2019. During this period, the weekly RSI formed considerable bullish divergence, a sign that the price is likely to move upwards, starting a new long-term trend. Volume has been increasing throughout the recent bullish weekly candlesticks – another bullish sign. If the price indeed begins to move upwards, the closest resistance areas are found at 5,830 and 10,100 satoshis.
IOTA Long-Term Movement
IOTA Chart By Tradingview
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Trend Reversal

In the daily chart, IOTA is following a rising support line and has just bounced on it. It is in the process of creating a bullish engulfing candlestick. Furthermore, the price has moved above its 100-day moving average (MA). This MA has been an almost perfect indicator of the trend since September 2019. In other words, price action had remained bullish when the price was above this MA, and vice versa.
IOTA Daily
IOTA Chart By Tradingview
The short-term chart aligns with this view. It seems that the price has completed a five-wave Elliott formation on June 4, and has been correcting inside a descending parallel channel since. It’s possible that the price finished correcting on June 15, when it created a double bottom combined with a bullish divergence on the RSI. This would be confirmed with a breakout above the resistance line of the channel.
IOTA Short-Term Movement
IOTA Chart By Tradingview
To conclude, the IOTA chart indicates that the price is likely to begin a long-term trend reversal soon. This would be confirmed by a breakout above the descending resistance line of the current short-term channel.
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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 ConditionsPrivacy Policy, and Disclaimers have been updated.

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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)
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