IOTA (IOTA) is nearing the end of its pattern, but neither price action nor technical indicator provide consensus on the direction of the next move.
IOTA has been moving down since the week of April 12-19. The downward movement was contained in a symmetrical triangle that is considered a neutral pattern. Hence, both a breakout and a breakdown are possible.
While the support line was only validated twice (green icons), the resistance line was validated at least four times (red icons).
Other than the triangle being a neutral pattern, both the MACD and RSI offer a neutral reading.
The MACD, which is made up of a short-term and a long-term moving average (MA), lies directly on the 0-line. This means that the short-term MA is moving at the same speed as the long-term.
The RSI, a momentum indicator, is right on the 50 line. This is also a sign of a neutral trend.
Hence, looking at lower time frames is needed to determine the direction of the trend.
Chart according to TradingView
Current range
The daily chart also provides an ambiguous reading.
The token has been trading in a range between $ 1.18 and $ 1.48 since the beginning of October. While it appeared to initiate an upward move after creating a long bottom wick (green symbol) on November 18th, it was rejected by the $ 1.48 area on November 17th and continued its decline thereafter.
Additionally, similar to the weekly timeframe, the MACD and RSI are on the 0 and 50 lines, respectively.
Hence, either a breakout or a breakout of the range is required to determine the direction of the next move.
Chart according to TradingView
IOTA wave number
Cryptocurrency trader @ Mesawine1 sketched an IOTA chart noting that the triangle looks complete and is waiting for either the resistance or support line to be broken.
Source: Twitter
Just like the weekly time frame, IOTA appears to be trading within a more short-term symmetrical triangle. As described above, this is a neutral pattern.
However, since it seeps through after a downward move, it could be a B-wave triangle. This would mean that once the triangle is complete, another downward move would complete the C-wave and lead to new lows.
However, this pattern is not yet confirmed and is uncertain due to the ambiguity of the technical indicators.
Hence, the direction of future movement will determine whether to break the $ 1.12 low or the $ 1.18 high first.
Chart according to TradingView
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