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- Iota taking severe resistance from the 200 EMA
- Iota might take a fall of 15 percent if it successfully takes the resistance
IOTA’s price has been under a bearish influence for quite a while although now it looks like the bulls might be interested in getting the control back from the bears. After making consistently lower lows and trading under the major EMA’s IOTA had been making long red candles signifying the bear’s dominance but recently it started making strong green candles indicating the trend changing towards the bull’s favor. IOTA is currently trading at the price of $ 26 with a change in 24-hour trading volume of 131%.
IOTA is up 4.26% in the last 24 hours.
IOTA might break the downtrend
After trading under a severe downtrend for a few months IOTA is showing indications of making a comeback. IOTA has been trading in a downtrend for a long time however recently it broke its severe resistance near mid-January with a strong bullish candle also crossing the 100 EMA in the process. However, as of now, it is facing its second critical resistance the 200 EMA which is quite an important resistance as it is said that a stock is under a downtrend if it is trading under the 200 EMA and on an uptrend, if the stock is over it same applies to the cryptocurrency despite its volatile nature.
Technical Analysis ( 1 Day Timeframe )
EMA’s – As illustrated in the above chart after trending under the 100 EMA for the last couple of months IOTA Price broke the resistance near early January. After taking support from the 100 EMA twice IOTA made a strong bullish candle although currently, IOTA price is taking resistance from the 200 EMA.
Support and Resistance – After constantly taking support from the price level of $0.2500 to $0.2363 IOTA broke down in early November although IOTA recently broke its resistance on the same level. IOTA’s most recent resistance is 5% above its current price.
RSI – RSI line is currently trading around the overbought level at point 66.86 while after making consistent lower highs and lower lows under the 14 SMA the RSI line recently broke its 14 SMA resistance with strong momentum.
Conclusion
As can be concluded from the above analysis IOTA is currently facing critical resistance from the 200 EMA despite crossing its previous critical resistance with a strong momentum it is yet to be seen whether IOTA will be able to cross its recent major resistance as according to many seasoned investors 200 EMA is said to be a difficult and critical resistance.
Technical levels
Support – $ 0.2259
Resistance – $0.3000
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes 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 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.
