IOTA has been on a continuous slide since breaking below key support levels against the dollar and bitcoin. IOTBTC is below a falling trend line on the 1-hour time frame and is currently testing this resistance.
Applying the Fib tool on the latest swing high and low suggests that IOTA could still pull up a bit higher against bitcoin but the 38.2% Fibonacci retracement level is above the trend line already. The 50% level is closer to an area of interest or former support that might keep gains in check.
The 100 SMA is below the longer-term 200 SMA on this time frame so the path of least resistance is still to the downside. This means that the selloff is more likely to continue than to reverse. Stochastic is pointing down to signal the presence of selling pressure while RSI is also turning lower so IOTA could follow suit.
Bitcoin is facing a major event risk in the form of a network upgrade this month, so it’s understandable that the gains are slower from here. If all goes well, bitcoin could be poised to establish record highs and IOTBTC could have a steeper drop.
Against the dollar, IOTA is in a falling wedge pattern and is bouncing off support. This could pave the way for a test of the resistance at 0.4000. If it holds another move towards support near 0.3000 could be seen.
The 100 SMA is also below the longer-term 200 SMA on this time frame so the path of least resistance is to the downside. This could mean a bounce off the top of the wedge or a break below support, which would set the stage for a sharper tumble.
Stochastic is on its way down from the overbought zone to signal a pickup in selling pressure, but RSI still seems to be in a climb. The dollar is currently taking its cues from tax reform updates and rumors that a one-year delay could be imposed by Senate has weighed on the currency.
