IOTA looks ready to resume its selloff after bouncing off the top of its descending channel on the 4-hour chart. Applying the Fibonacci extension tool on this quick pullback shows the next downside targets.
The 38.2% extension is near the mid-channel area of interest at 0.8264 and could hold as near-term support. Stronger selling pressure could take IOTA down to the 50% extension at 0.6864, the 61.8% extension at 0.5463 or the 78.6% extension at the channel support or 0.3470.
The full extension is located at 0.0930. The 100 SMA is below the longer-term 200 SMA to confirm that the path of least resistance is to the downside.
This basically means that the selloff is more likely to resume than to reverse. These moving averages line up with the top of the channel to add to its strength as a ceiling.
However, the gap between the moving averages is narrowing to signal weakening bearish pressure. At the same time, RSI is prepping to climb out of the oversold region to signal a return in bullish pressure. Read more from livebitcoinnews.com…
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