IOTA Technical Analysis: Reversal Within Triangle Hopes Bullish Breakout
IOTA is an open ledger distributed with one major difference in that it's not an actual blockchain. Instead, its own technology is referred to as Tangle, a network of nodes that verify transactions.
The foundation of this platform claims that it offers much faster speeds than traditional blockchains and is also an ideal foundation to support the ever-expanding Internet of Things ecosystem.
Let us move ahead to read about IOTA technical analysis.
Past Performance of IOTA
The IOTA coin price shows a reversal of the short-term retracement of 30% in the last week. The price action forms a morning star pattern in the daily chart near the support level at $1. Therefore, a bullish reversal to the resistance trendline is possible in the next few days.
IOTA Technical Analysis
The IOTA coin price seems to have overcome the short-term downtrend with the reversal near $1. Moreover, the price action showcases the possibility of a bullish reversal within the descending triangle pattern. Moreover, the reversal comes as the altcoins gain slight bullish momentum after the bloodbath. That is why the reversal increases the chances of a bullish breakout is high.
The IOTA price action indicates resistance at $1.5 and $1.80 above the resistance trendline. The support levels are at $0.80 and $0.60 below $1.
The RSI indicator at 40% shows the slope moving sideways in the nearly oversold zone after the downfall in the bloodbath. However, the stabilizing slope increases the chances of a bullish continuation as it neutralizes the bearishness gradually.
The Stochastic RSI indicator shows the K and D line giving a bullish crossover in the oversold zone. Therefore, the indicator shows high chances of a bullish continuation that can result in the trendline breakout.
Upcoming Trend
The IOTA technical analysis shows a bullish reversal within the triangle with the morning star pattern near $1. Therefore, a price jump to the resistance trendline is possible. Moreover, the chances of a breakout above the trendline are increasing as the trend gains momentum.
Therefore, traders can find buying opportunities at current prices with a target near the trendline or at the breakout of the resistance trendline.