IOTA Up 50% Since Jan 24th, What Next?
IOTA (IOTA) appears to be in a long-term correction and could break out after a period of consolidation.
Descending resistance line
IOTA has been falling along with a descending resistance line since September 4th. Recently, it rejected the award on December 30th (red icon).
This led to a low of $0.69 on Jan. 24. Since then the price has gone up again.
It is currently trading within the $1.05 zone, which previously served as support since September 27th. Now the zone is expected to act as one-off resistance again.
The descending resistance line mentioned above currently stands at $1.10.
IOTA technical indicators on the daily timeframe are relatively bullish as both the MACD and RSI are bullish.
More importantly, the RSI has risen above 50. The RSI is a momentum indicator and the 50 line is considered the uptrend/downtrend threshold.
While the MACD is rising, it has not yet entered positive territory. When this happens, it will go a long way towards confirming that the trend is bullish.
The $1.08 resistance area created by the 0.382 Fib retracement resistance level coincides with the aforementioned horizontal resistance area. Therefore, winning it back would be a major bullish move.
Trader @Thetradinghubb tweeted an IOTA chart and said that the price is consolidating inside a triangle with wave 4.
The source: Twitter
The most likely wave count suggests IOTA is in wave four of an upside impulse that started in March 2020.
In July 2021 and January 2022 (green icon), the token bounced off the centerline of the parallel channel connecting waves one and two. This completed the wave 4 pullback, supporting the possibility that IOTA is still in the fourth wave.
If true, the previously mentioned January 24 low will not be breached. Instead, after moving towards $1.55 and consolidating for some time, IOTA is expected to break out and move towards new highs.
Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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