IOTA Price Analysis: IOTA Coin price is facing rejection at short term supply zone, what next?

• IOTA Coin price is facing rejection of the short-term supply zone at $1.04 and has fallen down.
• The coin forms a falling wedge pattern on a daily time frame.
• The pair of IOTA/BTC is trading at 0.00001879 with an increase of 0.70 % in the market cap of the digital asset over the past 24 hours.

IOTA Token price  is moving in a downward parallel channel over the last trading weeks. As per the price action, the coin is forming lower low and lower high formation on the daily chart. At present, the coin is trading below all the vital Exponential Moving Average(20, 50, 100) and it has fallen down of 50 and 100 EMA. The coin fell down forming a big bearish engulfing candle at the resistance, indicating a bearish momentum for the upcoming days. The coin was trading at the upper band of the bollinger band indicator and due to bearishness it failed to breakout of it and is now trading the middle at 20 EMA. If the same continues the coin can fall down to $0.75 at short term demand zone. Volumes have decreased compared to previous weeks and therefore if it breaks $0.75 then it can fall furthermore.

MACD and Supertrend are showing neutral signs on the daily chart

IOTA coin price has been in a strong downtrend over the past couple of trading days and the technical parameters suggest the same.

Moving Average Convergence Divergence (Bullish):MACD indicates a bullish trend on the daily time frame as it gave a positive crossover. The buyer’s (blue) signal line crossed the seller’s (orange) upside. If the token breaks out of the green trendline, it can reach $1.03 and above. It is possibly making new highs if the momentum continues.

Supertrend: Recent bearishness in the price of the IOTA token led to the Supertrend indicator’s breakdown at $1.1, and the supertrend gave a sell signal. The Token fell below the supertrend line, after facing rejection at the super trend line. If the token surpasses the super trend trendline, there can be a short-term bullish movement in the digital asset price. If the Token cannot break out of the above supertrend sell line, then it can stay into a bearish trend that can push the price down to $0.5.

IOTA Token is forming falling wedge pattern on daily timeframe

IOTA Token price is trading above the demand zone of $0.75.The token price has bounced back after forming long wick rejection candles at the support.The token is forming symmetrical triangle on weekly timeframe and is trading in narrow range.Breakout on either side will trigger big moves.

Relative Strength Indicator: RSI is trading at 62.94, and recently the RSI Curve has given a positive crossover of 20 SMA.After taking support, the token gave impulse move  due to which RSI curve was seen moving higher.As the token is rising, the RSI Curve has gone past the halfway mark of 50. The trend is bullish as of now, and it will continue until the Token faces rejection at the price of $1 and $1.2.

Average Directional Movement Index: ADX dipped below 30 as Token’s price fell. After the bounce back off the supply zone, the Token is consolidating at it and the ADX curve is depicting the same.ADX curve has turned neutral, indicating a halt in movement and possible change in structure of price movement.

Conclusion 

As per the price action, IOTA token price is forming a falling wedge bullish chart pattern. The technical parameters are also suggesting bullish momentum for the upcoming trading days. The investor should be cautious until the token breaks out on either side. It remains to see if the token breaks on the upside or bears trample the price down.

SUPPORT: $0.8 and $0.75

RESISTANCE: $1.0 and $1.2

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish the financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.