IOTA is trending higher since its upside breakout from the wedge pattern previously highlighted. Price is now trading above an ascending trend line connecting the latest lows of price action.
Price is currently testing this support area and a bounce could take it up to the Fib extension levels next. The 38.2% extension is near the 1.7000 mark while the 50% extension is at the swing high around 1.7432. The 61.8% extension is near 1.8000 and the 76.4% extension is at 1.8572. Stronger bullish pressure could take it up to the full extension at 1.9590.
The 100 SMA is safely above the longer-term 200 SMA to confirm that the path of least resistance is to the upside. This suggests that the uptrend is more likely to continue than to reverse. The gap between the moving averages is also widening to indicate strengthening bullish pressure.
Stochastic is indicating oversold conditions to suggest that the correction is already over and buyers are ready to take over from here. RSI has some room to fall, though, so bears could stay in control for a bit longer.
Cryptocurrencies have rebounded for the most part of the previous week and IOTA has been leading the pack. The dollar does have some support from rising geopolitical risks, though, as traders are flocking to safe-havens after the US military strikes in Syria.
This could mean that IOTA faces the largest potential upside if the cryptocurrency rallies stay in play this week. The sentiment in the space has improved after it was reported that several investor families are gearing up to place bets in the industry.
For now, traders could still be a bit uneasy to put more money on IOTA after its recent hack earlier this year. Still, the progress for IOTA has been consistent, with a steady stream of partnerships, research news and the future promises of the Internet of Things. Just recently it launched its website as well.
