IOTA Price Analysis: IOT/USD hunt for key support gains momentum
- IOTA embarks on gains trimming exercise within a descending channel.
- All technical levels align in support of the ongoing reversal.
IOTA is among the worst battered cryptocurrency even as the week grinds to an end. The asset is trading at $0.1736, which is lower 2% from the opening price of $0.1772. The recent surge from lows at $0.1558 ran out of steam before testing $0.2. However, IOTA broke several resistances to new 2020 highs at $0.1967.
The last couple of days have been dominated by declines as IOTA embarked on a new mission to find a credible support zone. The losses are also confined in a descending channel whose support and resistance line have been tested severally. As long as the channel support continues to hold, the bulls can focus on breaking the resistance and pull the price above $0.2.
Meanwhile, technical levels suggest that the path of least hurdles is to the south. The Relative Strength Index is brushing shoulders with 30 and could make an entrance into the oversold region in the near term. At the same time, the Moving Average Convergence Divergence is stuck in the negative territory. If the MACD bearish cross increase, IOTA could test the next support at $0.17 or even fall further towards $0.16.
IOT/USD 1-hour chart
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Author
John Isige
FXStreet
John Isige is a seasoned cryptocurrency journalist and markets analyst committed to delivering high-quality, actionable insights tailored to traders, investors, and crypto enthusiasts. He enjoys deep dives into emerging Web3 tren
