IOTA technical analysis: Sell the bounce, as bears still eye 0.2550/25 support area

IOTA (IOT/USD), the 17th largest cryptocurrency, is the main laggard amongst the top 20 widely traded cryptocurrencies, having lost nearly 7% over the last 24 hours. Despite the sharp declines, the coin risks further downside in the near-term amid bearish technical setups on different time frames, and therefore, any rebound is likely to be sold-off at higher levels. At the time of writing, IOT/USD trades near 0.2850 region, with the current market capitalization of $792 million and an average trading volume of $86 million.

IOT/USD, 1-hour chart

 

• The coin remains bearish after ascending triangle breakdown on hourly sticks.
• Risks falling further to 1.2525/00 levels (pattern target) on a breach of the upward sloping 200-hourly Simple Moving Average (HMA) at 1.2708.
• Hourly Relative Strength Index (RSI) turns north from the oversold territory, suggesting a likely bounce.  
• Any rebound is likely to run into key resistances stacked up in the 0.2920/30 area, where 21 and 100-HMA converge.
• If the bulls manage to regain the last, the next supply zone will be seen at 0.2970/90 levels.

IOT/USD Daily chart

 

• The symmetrical triangle bullish breakout on daily sticks appears to lack follow-through.
• Sellers continue to lurk near 0.3110 region, where the bearish 100- Daily Simple Moving Averages (DMA) lies.  
• Daily Relative Strength Index (RSI) is seen piercing the 50 level from above, pointing to more losses ahead.
• Therefore, the descending trendline resistance-turned-support near 0.2600 remains on sellers’ radar.
• A failure to resist the last, the next support around 0.2560 (confluence of 21 and 50-DMA) will be tested.  

IOT/USD Levels to watch