IOTA partially recovered losses; upside limited after team publishes after-hack remediation plan

• IOTA stays under pressure after the team publishes the remediation plan.
• IOT/USD is locked in a short-term range, down 3% since the beginning of Tuesday.

IOTA, now the 24th largest digital asset with the current market value of $786 million, regained some ground after a sharp sell-off at the end of the previous week. However, the upside momentum remains weak due to lingering problems with IOTA blockchain. 

At the time of writing, IOT/USD is changing hands at $0.2708. The coin has gained 6% in recent 24 hours and lost over 3% since the beginning of the day. IOTA hit the recent low at $0.2602 on Monday and recovered to $0.2870 by the time of writing before the sell-off resumed and pushed the price towards $0.2800.

IOTA's Trinity woes

IOTA developers were forced to stop all transactions on IOTA blockchain due to a major vulnerability revealed in its flagship wallet Trinity. While the desktop version of the wallet has been updated, it is only partially functional.

The team published a detailed remediation plan and explain how users would be able to claim their stolen tokens. At this stage, Trinity users are asked to upgrade to a new version to remove the vulnerability from the wallet and make the hacker incapable of accessing the coins.

The next step will imply migrating tokens to the safe seed with a dedicated migration tool that will be released soon.

According to the recent information, the hack attack started on January 25, 2020, and only Trinity Desktop users’ seeds were compromised. However, the team recommends all users to migrate their tokens to a new seed.

IOT/USD: Short-term technical picture remains uncertain

On the downside, the initial support is created by SMA50 on a 1-hour chart at $0.2770. Once it is out of the way, the sell-off is likely to gain traction with the next focus on the lower line of 1-hour Bollinger Band at $0.2680 and the recent low of $0.2602. 

A sustainable move above $0.2850 will improve the technical picture and allow for an extended recovery towards $0.2880 (the recent high). This barrier is followed by psychological $0.2900 reinforced by the upper line of 1-hour Bollinger Band. The next resistance comes at $0.2940 (SMA100 1-hour).

IOT/USD 1-hour chart

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