The IOTA price has been declining since Aug. and is approaching a crucial support level, which is likely to initiate a bounce.
However, the IOTA/BTC pair has just reached a new all-time low and should continue falling.
The IOTA price is currently trading between $0.21 and $0.30, having been rejected by the latter on Oct 27. Since then, IOTA has been falling rapidly, reaching a low of $0.214.
The resistance area is the 0.382 Fib level of the entire upward move beginning in March. The support area is the 0.618 Fib level.
Cryptocurrency trader @youngcryptowolf outlined an IOTA chart, stating that he expects some consolidation before the price eventually moves upwards.
As outlined above, the price is trading very close to a major support area and could bounce once reached.
On the shorter-term 6-hour chart, we can see that IOTA has been following a descending resistance line since Sept 27. It has been rejected numerous times.
There is some bullish divergence developing in both the RSI and the MACD, a sign that the price could soon break out from the resistance line.
Since there is no confirmation on the divergence, it would make sense for the price to drop again and validate the previous support area before eventually breaking out from the resistance line.
As long as the price is trading below this line, the trend is bearish.
The IOTA/BTC chart is considerably more bearish than its USD counterpart. The price has fallen below the 2150 satoshi support area and is now at an all-time low.
Technical indicators do not yet suggest an impending reversal, but on the contrary, the Stochastic Oscillator has just formed a bearish cross. Therefore, the price should continue falling soon.
While the IOTA/USD price is approaching an important support area and could soon bounce, the IOTA/BTC pair has fallen into price discovery and does not show any reversal signs.
For News’s previous Bitcoin analysis, click here!
Disclaimer: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. The views expressed in this article do not reflect those of News.