IOTA bullish despite 10% decline amid Bitcoin’s sell-off: here’s why
The crypto market is looking to flip green after descending into the red on Thursday, as Bitcoin’s 8% decline dragged the rest of the market into red, IOTA’s price fell 10%
IOTA faces strong selling pressure in the short term after falling 10.91% as a sharp sell-off in the Bitcoin market followed losses in the stock markets.
Before yesterday’s drop during the European session, IOTA looked on track for a retest of prices around $0.30. However, a sharp decline in Thursday’s trading has left the altcoin at around $0.22. The price of the cryptocurrency is now more than 5% down in the past 24 hours.
IOTA technical analysis
A rejection at $0.25 appears to have encouraged bears, adding to the potential for short term declines that might pull prices below $0.2201.
A loss of upside momentum at the time of writing sees IOTA trading at $0.228, down 6% on the day. Buyers are likely to face stiff penetration resistance at this level, after which the currency could descend into extended sideways trading below $0.25.
A breakout above this level recently saw it enter overbought territory, hence the selling pressure that has pushed price bars below short term EMAs.
But recovery above current price levels will only materialise if bulls push prices above moving averages and if a breakout sees the 50-day SMA cross above the 200-day SMA.
The RSI is rising, and with the MACD pointing north, bulls will need to hold $0.22 to benefit from increased demand at low prices. Increased buying pressure might be what MIOTA/USD needs to clear resistance at $0.26. The bullish momentum from the past week is likely to hold if IOTA climbs above the aforementioned EMAs.
If this happens, added volatility could be the signal for the return of a bullish case and moves around $0.35 are possible.
IOTA’s Tangle technology
The technical picture reveals the potential for further declines in IOTA prices before a new uptrend takes the coin’s value to new highs. However, the potential for the Tangle technology to gain massive traction in fog computing is likely to push MIOTA/USD in the market.
US tech giant, Intel, recently filed a new patent that references the Tangle’s potential use to improve data flow in connected vehicles. The tech giant is looking at the integration of new technology in V2X (Vehicle-to-Any) communication.