IOTA Price Update: IOT/USD may struggle to stay above $0.2000

IOTA is the 23th largest digital asset with the current market value of $578 million and an average daily trading volume of $12 million. The coin has lost over 8% in the recent 24 hours and over 6% since the start of Monday to trade at $0.2077 at the time of writing. IOT/USD is moving within a short-term bearish trend in sync with the market.

IOT/USD: Technical picture

IOT/USD touched the intraday low at $0.2031 and rebounded above a cluster of daily SMA200 and SMA50 at $0.2050. Now this area serves as a local support for the price. Once it is out of the way, the sell-off is likely to gain traction with the next focus on psychological barrier of $0.2000, which is followed by the lower line of the daily Bollinger Band at $0.1958.

The downward-looking RSI on the daily chart implies that the bearish pressure is here to stay with the ultimate downside goal at $0.1800 reinforced by daily SMA100 at $0.1780.

On the upside,  we will need to see sustainable move above $0.2200-$0.2220 the upside to gain traction. This area contains the daily opening and a lower boundary of the weekend channel. If it is passed, the upside momentum may gather pace and take the price towards psychological $0.2300 with the middle line of the daily Bollinger Band located right below this barrier. 

IOT/USD daily chart

The RSI on an intraday chart attempts a recovery out of the oversold territory; however, there are no clear signals of reversal as yet. The above-mentioned resistance area of $0.2000-$0.2200 is confirmed by 1-hour SMA50 and followed by SMA100 at $0.2260. The upper boundary of the short-term consolidation channel and the upper line of the 1-hour Bollinger Band adds strength to $0.2300.

IOT/USD 1-hour chart