IOTA is currently trending lower to the dollar and is moving inside a descending channel connecting the latest highs and lows. Price is currently testing the channel resistance and could be due for a drop back to support around 0.3000.
The 100 SMA is below the longer-term 200 SMA so the path of least resistance is to the downside. The gap is also widening to reflect stronger bearish momentum. The 100 SMA lines up with the channel resistance at 0.5000 to add to its strength as resistance as well, but a larger correction from the selloff could still lead to a test of the 200 SMA dynamic resistance at 0.7000.
Stochastic is already indicating overbought conditions, which means that buyers are tired and ready to let sellers regain control of IOTA price action. RSI has room to climb, though, so a larger correction is still a possibility until the oscillator turns back down. A break past the 200 SMA line in the sand on strong bullish momentum could lead to a move towards the area of interest at 1.0000.
IOTA is an open-source distributed ledger protocol launched in 2015 that goes beyond blockchain through its core invention of the blockless ‘Tangle’. This is a quantum-resistant Directed Acyclic Graph whose digital currency has a fixed money supply with zero inflationary cost.
This uniquely offers zero-fee transactions no fixed limit on how many transactions can be confirmed per second as scaling limitations have been removed with output growing in conjunction with activity. Unlike blockchain architecture, IOTA has no separation between users and validators. Instead, validation is an intrinsic property of using the ledger, thus avoiding centralization.
The dollar could be in for more weakness against its peers as the FOMC prepares for its monetary policy decision. Downgrades to GDP are eyed to account for the impact of the hurricanes on growth, which might likely weigh on the central bank’s tightening bias. Traders are also waiting for more details on the balance sheet runoff, so Yellen’s presser would likely have an impact on volatility.
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