IOTA has formed lower highs and found support around 0.4800 to create a descending triangle pattern on its 1-hour chart. Price just bounced off support and appears to be setting its sights back on the triangle resistance, this time around 0.5100.
The 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. In other words, the rally is more likely to carry on than to reverse. However, the gap between the two indicators is narrowing to signal weakening bullish momentum and a potential bearish crossover.
If that materializes, IOTA could revisit the triangle bottom and attempt to break lower. This could spur a drop that’s the same height as the triangle pattern, which spans 0.4800 to 0.5700. The 100 SMA appears to have held as dynamic resistance also.
RSI is starting to head lower without even reaching overbought levels, suggesting that sellers might be eager to return and push for another leg lower. Stochastic is also pointing down to indicate a return in selling pressure, hinting that resistance would likely hold on a test.
Earlier this month, the project confirmed the launch of the IOTA Hub, which is a standardized, open-source solution to various issues with IOTA service providing. Among these are seed management, double signing, confirmation monitoring, reattachment of bundles and so on.
In another positive update, trading platform eToro recently confirmed that they will be offering IOTA as a tradable currency to its users. Developments like these tend to be supportive of price gains as the listing brings more liquidity and increased activity for the altcoin involved.
Also, the cryptocurrency industry is renewing its optimism for bitcoin ETF applications as the SEC announced that it will review the latest set of rejections. This could keep the prospect of an approval in play, keeping prices afloat in the process.
Images courtesy of TradingView
