IOTA’s support area could trigger a bounce

IOTA price has been falling since August and is approaching a crucial level of support that is likely to usher in a rebound.

However, the IOTA / BTC pair has just hit a new all-time low and should continue to fall.

Trade range

IOTA price is currently trading between $ 0.21 and $ 0.30 after being declined on October 27th. Since then, IOTA has fallen rapidly, hitting a low of $ 0.214.

The resistance area is at 0.382 Fib of the entire up move from March onwards. The support area is the 0.618 Fib level.

TradingView’s IOTA chart

Cryptocurrency trader @youngcryptowolf sketched an IOTA chart and stated that it expects some consolidation before the price finally goes up.

Source: Twitter

As noted above, the price is trading very close to an important support area and could rebound once it is hit.

Future movement

On the shorter-term 6-hour chart, we can see that IOTA has been following a descending resistance line since September 27th. It has been rejected several times.

Both the RSI and the MACD are developing a bullish divergence, a sign that the price may soon break out of the resistance line.

With no confirmation of the divergence, it would make sense for the price to move back down and confirm the previous support area before finally breaking out of the resistance line.

As long as the price trades below this line, the trend is bearish.

Chart according to TradingView

IOTA / BTC

The IOTA / BTC chart is significantly more bearish than its USD counterpart. The price has fallen below the Satoshi support area of ​​2150 and is now at an all-time low.

Technical indicators do not yet point to an imminent reversal, on the contrary, the stochastic oscillator has just formed a bearish cross. Therefore, the price should continue to fall soon.

Chart according to TradingView

Conclusion

As IOTA / USD price approaches an important support area and could soon rebound, the IOTA / BTC pair has fallen into pricing and is showing no reversal signs.

For BeInCrypto’s previous Bitcoin analysis, click here!

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