- IOTA’s consolidation above the support at $0.2350 gives way for a breakout above $0.24 resistance.
- The present positive technical indicators suggest IOTA is likely to correct towards 0.25.
IOTA has defied the broad-based bear pressure to post a subtle 1.3% increase in value on the day. Prior to the impressive correction on Monday, IOTA was consolidating above the short-term support at $0.2350. The initial recovery from the recent low at $0.2268 failed to break the resistance $0.25.
The trend since Monday has been forming a contracting triangle pattern. A lower high pattern below the resistance at $0.25 and a higher low pattern above $0.2268 (recent low). A break above the triangle resistance gave IOTA a boost above the short-term resistance at $0.24. Unfortunately, the momentum fizzled out leaving $0.2425 untested.
Looking at the Moving Average Convergence Divergence (MACD) we can tell that IOTA has an inclination to the upside. The growing positive divergence suggests that buying entries will continue to increase in the coming sessions. The price is sitting above the simple moving averages with the 100 SMA on the 1-hour chart offering support at $0.2385 and the 50 SMA at $0.2375. Other notable support areas include $0.2350, $0.2300 and $0.2275.
MIOTA/USD 1-hour chart
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