IOTA’s price could flip higher if bulls hold above $1.05 and fresh buying pressure surfaces short term
IOTA is trading at $1.06 at press time, which puts its price 12.45% down over the past 24 hours and just under 27% in the red over the weekly time frame.
Although bulls are trying to push higher after a wave of bearish momentum, bears seem determined to pull prices lower. The immediate technical outlook suggests the critical support zone at $1.05 could prove important to both the bears and bulls.
While the broader market remains in generally negative territory on the daily log, only a clear break off the pivot zone could send IOTA prices above $1.10. From here bulls could target recent resistance at $1.20 and $1.32 before eyeing a retest of 19 February 2021 highs at $1.58.
On the flip side, renewed downward pressure fuelled by a negative trend for Bitcoin and other major cryptocurrencies could pull IOTA/USD straight past the $1.05 pivot. Such a scenario could put buyers at risk of suffering new losses, which means sellers will likely target doing damage towards the $1.00 level and then the SMA 200 level ($0.85).
IOTA price technical outlook
The 4-hour chart has the IOTA/USD pair struggling for an upside after breaking below a short-term bullish trend line. The lack of upside conviction is highlighted by the appearance of a spinning top candlestick pattern. While it didn’t favour anyone as such, indecision appears to have emboldened the bears.
The Relative Strength Index (RSI) on the 4-hour chart remains below the midline and is trending with a negative divergence.
The Moving Average Convergence Divergence (MACD) indicator is just above the signal line. A bearish crossover could allow bears to increase their pressure and likely see an influx of more sell orders.
If this happens, the price of IOTA could dip below the $1.00 level. The anchor is also a key horizontal support zone, below which a fresh decline could see bulls rely on primary support at the SMA200 near $0.85.
In contrast, a flip upward off the $1.05 anchor could allow bulls to move higher. As noted above, the key price levels to watch would be $1.10, 1.32 and $1.58.