The IOTA price is lower by -10% today as the cryptocurrency market rally runs out of steam. However, the technicals suggest it could soon rally.
Most of the crypto market set all-time highs in April and May of this year. IOTA still has some way to go to set a new record.
The coin hit its $6.6171 high at the peak of the first bull market in 2017. For much of 2019 and 2020, the price never managed to trade above $0.50000.
It wasn’t until this year’s resurgent altcoin market that it finally woke up.
IOTA launched in 2016, intending to become the number one platform for the internet of things (IoT) ecosystem..
Its distributed ledger differs from many in that it’s not actually a blockchain. Instead, a system of nodes confirms each transaction. Therefore, transactions on the platform are free of charge.
In theory, there was a bright future ahead for IOTA, but as yet, it has failed to live up to the hype. Clearly, this has been a drag on the IOTA price.
Between February and April the 16th, IOTA climbed +400% to a multi-year high of $.2.7447.
Sadly, as we all know, it was not to last.
The -75% drop from the April high was pretty much in line with its peers. Again, the +63% bounce from the $0.67207 low to $1.08831, also broadly in line.
Subsequently, like much of the market, the IOTA price is now in a period of consolidation, seeking a catalyst.
A band of support between $0.96000 and $1.0080 is visible below the price. Dips to this level over the last four days have so far been met with buying.
Above the price, there is a resistance channel between $1.1116 and $1.1136.
At the current level, I hold no particular directional view. But, that would change on a break outside of this range. If the price can clear the resistance, it should extend to the April 21st high at $1.41040.
On the other hand, a failure to hold the support could send the IOTA price back to the $0.62070 mid-week low.
Whilst there may not be a tradable opportunity right now. The price action leads me to believe one may be just around the corner.
Therefore, traders should pay close attention to the price action at the current level and be primed to take advantage of a momentum breakout.
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