IOTA (IOTA) cannot break out of the long-term pattern

IOTA (IOTA) is nearing the end of its pattern, but neither the price action nor the technical indicator provide consensus on the direction of the next move.

IOTA has been moving down since the week of April 12-19. The downward movement was contained in a symmetrical triangle that is considered a neutral pattern. Hence, both a breakout and a breakdown are possible.

While the support line was only validated twice (green icons), the resistance line was validated at least four times (red icons).

Other than the triangle being a neutral pattern, both the MACD and RSI offer a neutral reading.

The MACD, which is made up of a short-term and a long-term moving average (MA), lies directly on the 0-line. This means that the short-term MA is moving at the same speed as the long-term.

The RSI, a momentum indicator, is right on the 50 line. This is also a sign of a neutral trend.

Hence, looking at lower time frames is needed to determine the direction of the trend.

Chart according to TradingView

Current range

The daily chart also provides an ambiguous reading.

The token has been trading in a range between $ 1.18 and $ 1.48 since the beginning of October. While it appeared to have started an upward move after creating a long bottom wick (green symbol) on November 18th, it was rejected by the $ 1.48 area on November 17th and continued its decline thereafter.

In addition, similar to the weekly timeframe, the MACD and RSI are 0 and 50 respectively.

Hence, either a breakout or a breakout of the range is required to determine the direction of the next move.

Chart according to TradingView

IOTA wave number

Cryptocurrency trader @ Mesawine1 sketched an IOTA chart noting that the triangle looks complete and is waiting for either the resistance or support line to be broken.

Source: Twitter

Just like the weekly time frame, IOTA appears to be trading within a more short-term symmetrical triangle. As described above, this is a neutral pattern.

However, since it seeps through after a downward move, it could be a B-wave triangle. This would mean that once the triangle is complete, another downward move would complete the C-wave and lead to new lows.

However, this pattern is not yet confirmed and is uncertain due to the ambiguity of the technical indicators.

Hence, the direction of future movement will determine whether to break the $ 1.12 low or the $ 1.18 high first.

Chart according to TradingView

Click here to view BeInCrypto’s latest Bitcoin (BTC) analysis.

What do you think about this topic? Write to us and tell us!

Disclaimer of liability

All information contained on our website is published to the best of our knowledge and belief and only for general information purposes. All actions of the reader in relation to the information on our website are entirely at your own risk.

Comments are closed.