IOTA is exhibiting bearish momentum as it broke below support of its consolidation patterns highlighted earlier on. IOTA is an open-source distributed ledger protocol launched in 2015 that goes beyond blockchain through its core invention of the blockless ‘Tangle’. This is a quantum-resistant Directed Acyclic Graph whose digital currency has a fixed money supply with zero inflationary cost.
This uniquely offers zero-fee transactions & no fixed limit on how many transactions can be confirmed per second as scaling limitations have been removed with output growing in conjunction with activity. Unlike blockchain architecture, IOTA has no separation between users and validators. Instead, validation is an intrinsic property of using the ledger, thus avoiding centralization.
Price broke below the 0.00013 support against bitcoin and is pulling up for a quick retest before resuming the slide. Applying the Fibonacci extension tool shows the next downside targets. The 38.2% extension is at 0.00012, the 50% to 76.4% extensions are around 0.00011, and the full extension is at 0.00010.
The 100 SMA is crossing below the longer-term 200 SMA to confirm that the path of least resistance is to the downside or that the selloff could resume. Stochastic is heading lower to reflect a return in bearish pressure as well, but RSI appears to be on the move up so a higher pullback is possible.
IOTA also broke lower to the dollar and seems to have completed its retest of the broken support around 0.5750. Using the Fib extension tool shows that the next downside target is at 0.5212 at the 38.2% level then at 0.5053 at the 50% level. The 61.8% level is at 0.4895 and the 76.4% level is at 0.4698. The full extension is at 0.4831.
Stochastic is also heading down for this pair so sellers are ready to push for more losses, but RSI appears to be climbing so IOTA could still follow suit. The dollar has been supported by Fed rate hike expectations for December ever since the FOMC statement sounded more hawkish and by the returning focus to the Trump administration tax reform plans.
