IOTA: Not much ado about this breakout

IOTA breaks out but not enough follow through.
Lack of volumes and lack of volatility unsupportive.

Manoj B Rawal Independent Analyst

IOTA prices broke out of a contracting traingle on the medium term chart, but the lack of follow through in terms of volume and price rallies is a good enugh reason to believe this breakout is a false one.

IOT/USD down just above 1 percent on day at $0.264 and in less than 2 percent range for the day. On the 240-minute chart, IOTA broke out of a contracting triangle that also has all the features of a falling wedge. What is missing is lack of volumes, volatility and lack of price rally after the breakout.

If bulls have to capitalise from here for any meaningful price gains, they need to cross past $0.2785 at the least. While any dip below $0.26 would result in the breakout termed as a false breakout.

IOT/USD 240-minute chart:

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Author

Manoj B Rawal

Independent Analyst

Manoj B Rawal, financial markets professional with about 11 years of experience in writing, editing and advising on stocks, currencies and fixed income.

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