IOTA is carrying on with its selloff against its counterparts after breaking below consolidation patterns. Trend lines or channels can be drawn to connect the latest highs and lows of price action and these also could serve as near-term resistance levels in the ongoing corrections.
Against bitcoin, IOTA is below a descending trend line pattern and the 61.8% Fibonacci retracement level lines up with this falling resistance. The 100 SMA is below the 200 SMA to signal that the path of least resistance is to the downside or that the selloff is more likely to continue than to reverse.
The 100 SMA dynamic inflection point lines up with the trend line as well, adding to its strength as a ceiling. Stochastic is moving up to show that a bit of bullish pressure is in play, along with the RSI. This signals that sellers are taking it easy and allowing the correction to unfold before returning.
Against ethereum, IOTA is in a descending channel and is currently testing support. A bounce could take it back up to the resistance around 0.001750 which is also in line with the 100 SMA dynamic resistance.
Stochastic is moving up so IOTETH might follow suit. RSI is also heading higher to reflect bullish momentum in play before sellers return once both oscillators hit overbought conditions and turn lower.
Against the dollar, IOTA is in a neater descending channel and is also in the middle of a correction. Applying the Fibonacci tool on the latest swing high and low shows that the 61.8% level lines up with the channel resistance at the 0.5000-0.5100 area.
This is also close to the 100 SMA dynamic inflection point and a former support zone. The 100 SMA is below the longer-term 200 SMA to confirm that the downtrend is likely to continue as well.
Stochastic is pointing up but is approaching overbought levels to signal a possible pause in the rally. If sellers are eager to get back in, price could find resistance at the 38.2% Fib or 0.4800 level.
RSI has a bit more room to climb so the correction might go on for much longer. The dollar has the FOMC minutes, CPI, and retail sales figures as event risks for the week.
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