IOTA Struggles To Gain Support (Price Analysis For IOTA: March 7)

Key Highlights For March 7

• The price made a high of $0.307 on Mar 1.
• It has been making lower highs since.
• The price is trading inside a symmetrical triangle.
• The MACD and SMAs generated a sell signal.
• There is resistance near $0.305.
• There is support near $0.26.

Tracing The Resistance

The price of IOTA (IOTA) on Binance is analyzed in 30-minute intervals from Mar 1 to Mar 7, 2019. The price of IOTA reached a high of $0.307 on Mar 1. A gradual drop ensued. It has made lower highs since. The descending resistance line is created by connecting these highs. The resistance line was touched on:

• Mar 1
• Mar 3
• Mar 7

The resistance line can effectively act as a ceiling to price, preventing further upward movement. However, a breakout above the line can lead to rapid price increases. Initially, the price increased at a slower rate than predicted by the line, but it reverted to the mean on the Mar 7 high. Continued price decreases for IOTA may be expected at least into the near future.

Symmetrical Triangle

After the second high on Mar 3, the price gradually dropped to a low of $0.270 The price has made successive higher lows since. Tracing these lows creates the ascending support line. The dates in which the line was touched are:

• Mar 4
• Mar 6
• Mar 7

The support and resistance lines combined to create a symmetrical triangle, which is a neutral pattern, a price increases and decreases being equally likely. The breakdown below the support line by a wick in a volatile market is relatively unimportant as long as it is not succeeded by continued breakdowns. In the case of IOTA, 30-Minute lows rarely broke below the support and were not supported by maintained losses. As prices continue to decrease, the price of IOTA may continue trading within this triangle until a point of convergence between the resistance and support. At that time, price will be forced to either breakout or breakdown. With the current downward trend, a breakdown appears more likely.

Triggering a Signal

The moving average convergence divergence (MACD) is a trend indicator that shows the relationship between two moving averages (long and short-term) and the price. It is used to measure the strength of a move. Combined with simple moving averages (SMA), MACD can be used as a trigger for buy and sell signals. Signals are triggered whenever the MACD line is above 0 and the price is above the 21 (red) and 50-period (green) SMAs. Volume is a measure of how much of a certain asset is traded in a certain period of time. Combined with the MACD, it can be used as a confirmation tool for the beginning of a trend. On Mar 7 the price made a rapid drop which took it from $0.287 to $0.264 in a span of 30 minutes. The drop occurred at a very significant volume. During the same interval, the price moved below the 21 and 50-period SMAs. Similarly, the MACD crossed below the 0 line. This would have triggered a sell signal, indicating that a greater downtrend may be starting. The trend would be invalidated with a breakout above the resistance line.

Resistance And Support

The price of IOTA on Binance is analyzed in two-hour intervals from Feb 11 to Mar  7 Resistance and support areas are formed when the price reaches a certain level several times. They can act as a ceiling/floor that prevents the price from moving further in that direction. The closest resistance area is found near $0.29, corresponding with the descending resistance line. The next one can be found near $0.305. If price were to break out of the resistance line, this would be a likely area of reversal. The next area of support can be found near $0.26. If price were to break down from the support line, this would be a likely area of reversal. Based on this analysis, the price of IOTA is more likely to breakdown from the triangle. If it does, the prediction will be partially validated. If it reaches the support area near $0.26, the prediction would be fully validated. What do you think will happen to the price of IOTA? Is a breakdown coming soon? Tell us your thoughts in the comments below!

Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.