IOTA has been caught in a long-term correction, and may break out after a period of consolidation.
IOTA has been declining since September 4 along a descending resistance line. Recently, Line rejected 30 December (red icon).
This led to a low of $0.69 on January 24. Since then the price has been moving upwards.
Currently, it is trading inside the $1.05 area, which previously acted as support since September 27. Now, this area is expected to act as resistance once again.
The above descending resistance line is currently located at $1.10.
technical indicator readings
Technical indicators are relatively bullish for IOTA on the daily time frame, as both the MACD and RSI are rising.
More importantly, the RSI has moved above 50. The RSI is a momentum indicator and the 50 line is considered a range for a bullish/bearish trend.
While MACD is trending upwards, it is yet to move into positive territory. This will go a long way in confirming the bullish trend.
The $1.08 resistance area formed by the 0.382 Fib retracement resistance level coincides with the horizontal resistance area mentioned earlier. Therefore, its retrieving will be a major rapid development.
IOTA waveform calculation analysis
cryptocurrency trader @thetradinghubb Tweeted a chart from IOTA saying that the price is consolidating inside the possibility of a fourth wave triangle.
The most likely wave count shows that IOTA is in wave four out of five wave upward movements that started from March 2020.
On July 2021 and January 2022 (green icons), the token bounced off the middle of a parallel channel connecting waves one and two. This effectively completed a fourth wave pullback, supporting the possibility that IOTA is still in wave four.
If true, the said January 24th low level should not be violated. Instead, IOTA would be expected to break out and move towards new highs after a period of consolidation and a move towards $1.55.
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