IOTA is currently pausing from its selloff inside triangle consolidation patterns, which might turn out to be continuation signals. Against bitcoin, IOTA is in a descending triangle and is attempting to break below support at 0.00021.
This chart pattern spans 0.00021 to 0.00026, so the resulting break could be of the same height. However, if support holds, IOTA could find its way back to the resistance at 0.00023.
The 100 SMA is below the longer-term 200 SMA, which means that the path of least resistance is to the downside. This means that the support is more likely to break than to hold. The gap between the moving averages is also widening to reflect stronger bearish pressure.
Stochastic is pointing down to confirm that sellers are in control of price action. RSI is also on the way down so IOTA could follow suit.
Against the dollar, IOTA is in a symmetrical triangle formation and is at the peak of the pattern. This means that a breakout is bound to happen soon. The chart pattern spans 2.000 to 3.700 so the resulting break in either direction could lead to a rally or selloff of the same height.
The 100 SMA is below the longer-term 200 SMA to signal that the path of least resistance is to the downside. This suggests that a downside break is more likely to happen than an upside one. Also, the short-term moving average lines up with the top of the triangle to add to its strength as a ceiling. A break higher could also hit resistance at the 200 SMA dynamic inflection point.
However, stochastic is pointing up to indicate that buyers have the upper hand. RSI is treading sideways to suggest further consolidation but is also turning higher at the moment.
Dollar demand has picked up in the latest sessions after Trump said that he’s seeing a stronger dollar and that Mnuchin’s remarks were taken out of context.
