• IOTA was selected for the final phase by the EU Commission.
• The price dropped by more than 4%, amounting to $0.2101.
• The trading volume descends by about 22%, equating to almost $10.320 million.

The EU commission selected IOTA for the final phase of the all-year-round bidding process for the European Blockchain Service Infrastructure (EBSI). The day this news surfaced, it pushed the price slightly but quickly went cold and did not reciprocate the expected return. The market still doesn’t fully trust the currencies, as the shock they witnessed is hard to recover from. 

Here’s what charts tell

The price forms a parallel channel, waiting for something to back the breakout. It takes support at the zone closer to $20 and moves in the same bounds unceasingly. It could have captured the 20-EMA if it surged, but it is still distant from the EMAs due to the sideways movement. The volume also shows no different story as they clearly reflect the freezing responses by the users.  

The CMF indicator currently floats at -0.05, laying flat and indicating no forthcoming rise, but on a positive note, it doesn’t hint at a downtrend either. It may rise steadily, maintaining the pace and forming an ongoing pattern. The MACD indicator entwines and goes flat with small splinters of sale and purchase, indicating the neutral market scene and saturated market forces. The RSI indicator floats in the bounds of 30-40 and is downward sloping, indicating the sellers may become more active in the immediate future. 

The closer timeframe

The CMF indicator slides upwards to the level of 0.23, slowly escalating and flashing some optimistic signals for the IOTA fans. It may further rise at the same pace it is rising now. The MACD converges with diminishing bars and slightly tears in bearish form with a sliver of purchases. This gap may widen gradually as the sellers take over the market and create selling pressure. The RSI indicator remains in the bounds near 40 and slopes down as the selling pressure starts to build in the market.  

Conclusion

The market currently holds less confidence in the industry as the crash that occurred has set the industry back many years back and it’s really hard to recover faster from the harm done. But this may be worrisome as low confidence may lead to sell-offs and it is evident that the selling pressure has already begun to form. 

Technical levels

Support levels: $0.19 and $0.14

Resistance levels: $0.28 and $0.32

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Nancy J. Allen

Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.