IOTA has carried on with its selloff to bitcoin and the dollar, but there are signs that the downtrend is slowing. Against bitcoin, IOTA is moving below a descending trend line and is moving to test the resistance area once more.
On the 4-hour chart, the 100 SMA is below the longer-term 200 SMA so the path of least resistance is to the downside, which means that the selloff is more likely to resume than to reverse. The gap between the moving averages is also widening to reflect stronger bearish momentum
Stochastic has been on the move up but is starting to turn back down without even hitting overbought levels. RSI, on the other hand, is starting to move up to suggest that bullish pressure is in play. Price has been unable to form new lows in the last drop, but a convincing break below the current consolidation could still draw more sellers in the mix.
Against the dollar, IOTA is still in its falling channel pattern and currently testing resistance also. The 100 SMA is below the longer-term 200 SMA on the 4-hour chart, also indicating that the path of least resistance is to the downside or that the downtrend would likely carry on.
Stochastic is turning lower after indicating overbought conditions, which means that selling pressure is building up. In that case, IOTA could fall back to the channel support below the 0.4000 handle next. RSI appears to be on the move up to reflect the presence of bullish pressure but is also treading sideways to signal consolidation.
The dollar appears to be on weaker footing after seeing downbeat reports from the US, particularly when it comes to jobs, inflation, and consumer spending. This dampened December hike expectations slightly but more so when it comes to 2018 tightening forecasts.
Apart from that, the market attention on the next Fed head candidates is also keeping uncertainty in play. There are dovish contenders but the currency has gotten a boost after Trump’s recent meeting with John Taylor and his upcoming meeting with Yellen.
