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IOTA Surges 50% Since January 24 Lows as Bullish Momentum Continues

2 mins
Updated by Ryan James
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In Brief

  • IOTA is following a descending resistance line.
  • It is facing resistance at $1.05.
  • IOTA is in wave four of a five wave upward movement.
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IOTA (IOTA) seems to be mired in a long-term correction, and could break out after a period of consolidation.

IOTA has been decreasing alongside a descending resistance line since Sept 4. More recently, the line caused a rejection on Dec 30 (red icon). 

This led to a low of $0.69 on Jan 24. The price has been moving upwards since. 

Currently, it is trading inside the $1.05 area, which had previously acted as support since Sept 27. Now, the area is expected to act as resistance once more. 

The aforementioned descending resistance line is currently at $1.10.

Technical indicator readings

Technical indicators for IOTA in the daily time-frame are relatively bullish, since both the MACD and RSI are increasing. 

More importantly, the RSI has moved above 50. The RSI is a momentum indicator and the 50 line is considered a threshold for a bullish/bearish trend. 

While the MACD is moving upwards, it has not yet crossed into positive territory. This would go a long way in confirming the bullish trend.

The $1.08 resistance area, which is created by the 0.382 Fib retracement resistance level coincides with the previously outlined horizontal resistance area. Therefore, its reclaim would be a major bullish development.

IOTA wave count analysis

Cryptocurrency trader @Thetradinghubb tweeted a chart of IOTA, stating that the price is consolidating inside what is likely a fourth wave triangle.

The most likely wave count does suggest that IOTA is in wave four of a five wave upward movement, which began on March 2020. 

On July 2021 and Jan 2022 (green icons), the token bounced at the middle of a parallel channel connecting waves one and two. This effectively completed a fourth wave pullback, supporting the possibility that IOTA is still in wave four.

If correct, the aforementioned Jan 24 low should not be breached. Rather, after a move towards $1.55 and a period of consolidation, IOTA would be expected to break out and move towards new highs.

For BeInCrypto’s latest Bitcoin (BTC) analysis, click here

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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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