IOTA Technical Analysis: Post Retest Jump Eyes 100 EMA Breakout

The IOTA price action displays the bullish candle forming on 26th September breaking the resistance trendline. However, the increased supply at the 100-day EMA reverses the trend to retest the bullish breakout. So, should you consider buying more during this retest phase?

Key Points:

Source - TradingView

IOTA Technical Analysis

The IOTA price action shows a bullish reversal from the support trendline of a falling channel breaking the resistance trendline. With a 24% jump within five days, including the bullish engulfing candle of 13% on the last day, bulls undermine the 18% drop within the bearish pattern.

The reversal rally breaks the 50-day EMA and the $0.30 horizontal level with the support of increased trading volume. However, due to the high supply inflow at 100-day EMA, the price trend took a bearish turnaround resulting in a retest of the broken level with two Doji candles.

Based on the price action analysis, the Doji candles represent a reversal possibility when formed at areas of interest. Hence, the retest at $0.30 comes as a bullish entry opportunity for the sideline traders.

Upon successful post-retest reversal, the IOTA price action will show an uptrend to the $0.37 mark if it exceeds the 100-day EMA. Conversely, if the sellers dump the price under the 50-day EMA, the IOTA market price will tumble to the bottom support at $0.24.

Technical Indicators

The RSI slope spikes above the halfway line, reflecting a surge in the underlying bullishness. Moreover, the MACD indicator shows the bullish spread increasing between the fast and slow lines, displaying growth in buying pressure.

Therefore, the technical indicators imply a growth of bullish influence over the underlying sentiments. As a result, the IOTA technical analysis takes an optimistic standpoint and suggests a reversal entry at $0.30.

Resistance Levels - $0.32 and $0.37

Support Levels - $0.30 and $0.24