After an amazing rally over the past few days, the IOTA bulls seem to be taking a breather.
IOTA exploded earlier this week, likely due to a newly announced partnership with Microsoft, Samsung, and others to launch a data marketplace for the Internet of Things.
The cryptocurrency, which traded below $ 1 about 10 days ago, rose more than 450 percent, hitting a new life high of $ 5.55 yesterday. That move erased previous record highs near $ 1.10 from August 17th and resulted in IOTA climbing to the fourth largest cryptocurrency by market cap in CoinMarketCap rankings.
At the time of writing, the cryptocurrency is trading at $ 3.50. According to CoinMarketCap, IOTA has lost 26.17 percent of its value in the last 24 hours. While the drop may look stunning, the 33 percent drop compared to the 450 percent rally doesn’t feel like a good old tech correction anymore.
In addition, the price chart analysis points to $ 2.50 as the new base for the cryptocurrency.
The graphic above shows:
- IOTA tested the support of the 50 percent Fibonacci retracement of the most recent rally ($ 3.12).
- The relative strength index shows overbought conditions and is about to break the downward rising trendline.
- Stochastic has fallen from the overbought area.
- The 5-MA and 10-MA are lured in favor of the bulls.
IOTA prices could test $ 2.55 (61.8 percent Fibonacci retracement) over the next 24 to 48 hours (as RSI and stochastics have slid down from the overbought territory), but support could be up thanks to that sloping 10-MA (seen rising) hold upwards towards the region of 2.50 to 2.60 US dollars tomorrow).
The base has clearly shifted to a level of $ 2.50 and it appears that the rally will continue. Going forward, a solid rebound near $ 2.50 could lead to a rally to new record highs above $ 5.55.
Bubble image via Shutterstock
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