IOTA is currently testing the bottom of its symmetrical triangle and looks ready for a break below support. Technical indicators are looking mixed, though, as moving averages are pointing to bearish momentum while oscillators look ready to turn higher.
The 100 SMA is still below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. In other words, support is more likely to break than to hold or resistance is more likely to hold than to break.
The moving averages also seem to have held as dynamic resistance levels and IOTA is trading below them to confirm bearish momentum. A break below the triangle bottom around 0.9700 could lead to a drop that’s the same height as the chart pattern, which spans 0.9000 to 1.2500.
However, RSI is starting to pull up after reaching oversold levels, which means that buyers could take over while sellers take a break. Similarly stochastic is pulling up from oversold territory so IOTA could follow suit.
This might be enough to take price up to the triangle top around 1.1000. A break past this resistance could spur a rally that’s the same height as the triangle formation. Read more from livebitcoinnews.com…
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