IOTA Technical Analysis: Bulls Go Berserk With Trendline Breakout
IOTA coin is optimized for the Internet of Things and helps in micro-transactions and remains lightweight, in contrast, to Bitcoin and Ethereum and other blockchains for different use-cases that are complex and heavy.
Let us read ahead to know more about IOTA technical analysis.
Past Performance of IOTA
The IOTA coin price finds demand near $1 on 20th Dec while completing the double bottom pattern in the daily chart. The sudden and overwhelming rise in buying pressure results in the breakout of the double bottom pattern. Moreover, the price breaks above the resistance trendline.
Therefore, the chances of a bull run are increasing as the uptrend gains momentum and drives to the next resistance level.
IOTA Technical Analysis
The IOTA coin price action retests the resistance trendline breakout before continuing the bull run, thereby, resulting in a long lower price rejection in the daily chart.
Therefore, the uptrend shows strength and hints at a price jump above the $2 mark if the demand sustains. Moreover, the crypto market attempts to recover from the bloodbath on Tuesday.
The RSI indicator at 65% shows a parabolic growth after spiking above the central line in the daily chart. The 14 days SMA mimics the growth and breaks above the central line.
The MACD indicator shows a boom in an uptrend with the rising intensity of the bullish histograms. Moreover, the MACD and signal lines continue to rise above the zero line in the daily chart.
Therefore, the technical indicators show a bullish breakout potential in the IOTA coin price. The breakout can drive the prices to new heights in January 2022.
Upcoming Trend
The bullish breakout of the resistance trendline in the daily chart faces a struggle to rise above the resistance zone at $1.55. However, the IOTA coin price shows extremely high buying pressure indicating a continued uptrend.
If the price breaks above the resistance zone at $1.55 the next prominent supply area is at $2 that can reverse the trend. However, if the price fails to sustain the demand, a downfall to $1.20 is expected.