IOTA Licking Wounds After Losing 96 Percent This Year
IOTA is meant to be a permissionless distributed ledger for a new economy. The project has a unique distributed ledger called the ‘tangle’ that does not use ‘blocks’ or ‘chains’ in the traditional sense but instead weaves individual transactions together like a web.
The project has had its ups and downs, making its first big run in July 2017 when the price shot from $0.17 to more than $1 a month later. Its most significant run, however, came in November at the beginning of the bull run when the price went from $0.35 to briefly trading above $5.
The 2018 bear market had different plans for IOTA and drug it back down the ladder to a new 2018 low of $0.25 last week, accounting for a 96 percent loss from its all-time high.
Stochastic RSI
Taking a look at the 3-day and two-week stochastic RSI, and it is clear that IOTA is pushing the boundaries into overbought territory.
All signs point to an upcoming decline in price, potentially looking to make a second test of the $0.25 support to recharge before the next attack.
A Beautiful Fall
Looking at IOTA’s daily chart with the focus on the past 11 months, we can see the price movement stuck within a clear descending channel — as is the case with the majority of altcoins,
As the price falls, it bounces hard off of the bottom support of the descending channel (blue stars) before topping out at the horizontal resistances and dropping back down another step to start the pattern all over again.
Each step down has been roughly 50 percent of the step which proceeded it. Since showing some recovery at the $0.25 mark, it is likely that after some consolidation the price will move up to the top of the channel once again around the $0.36 to $0.42 range.
[bctt tweet=”Between $0.25 and $0.30 looks to be a safe spot, but investors should be aware that IOTA’s all-time low of $0.15 has not been tested. A further decline in Bitcoin would almost certainly lead to the testing of lower support levels.” username=”beincrypto”]
Is IOTA ready to stage a reversal? How long before IOTA can climb back to the $5 level? Let us know your thoughts in the comments below!
Disclaimer: The contents of this article are not intended as financial advice, and should not be taken as such. BeInCrypto and the author are not responsible for any financial gains or losses made after reading this article. Readers are always encouraged to do their own research before investing in cryptocurrency, as the market is particularly volatile. The author of this article does not hold IOTA
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