Cryptocurrencies

IoTeX Price Craters 30% in 4 days after my Bearish call: What’s next?

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Written By: Elliott Laybourne
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    Summary:
  • The IoTeX Price is catching down to Saturday's low early on Monday as sellers use any bounce to offload IOTX tokens.

The IoTeX Price is catching down to Saturday’s low early on Monday as sellers use any bounce to offload IOTX tokens.

IoTeX (IOTX) is trading at $0.1068 (-6.00%), a seven-day loss of 33% and almost 60% below last month’s high. As a result, IoTeX’ market cap has crumbled from $2.4 billion to $1.03b in the last four weeks, ranking IOTX the 88th-most valuable cryptocurrency behind Voyager Token.

In my IoTeX Price Forecast last week, I laid out the following thesis:  In simple terms, if IOTX falls below $0.1510 on a closing basis, I expect to see a 38% decline towards the $0.0930 support.

Well, this morning, we are close to achieving my price target. But the question is: Is it still relevant in the current climate, or will IOTX go even lower? Looking at the daily chart helps us to assess the immediate prospects.

IOTX Price Forecast

The daily chart shows the IoTeX price action is highly bearish. Notably, the selling intensified once the token closed below the mentioned support at $0.1510. Subsequently, the price is approaching the 100-DMA at $0.0995 and the $0.0930 horizontal support level.

In my opinion, the IoTeX price will likely overshoot on the downside, considering the momentum. And if the price slices through support at $0.0930, it could extend towards the 200-DMA at $0.0666.

IOTX needs to reclaim the $0.1510 support (now resistance) for the outlook to improve, around 43% above the current price. Therefore, the path of least resistance is lower in the immediate future. On that basis, I am still bearish and have lowered my price target to $0.066. However, a close above $0.1510 invalidates the pessimistic prediction.

IoTeX Price Chart (daily)

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This post was last modified on Dec 06, 2021, 10:03 GMT 10:03

Written By: Elliott Laybourne

Elliott Laybourne is an accomplished Hedge Fund sales and Investment bank trading specialist. Elliott also started a successful Base Metals Brokerage business in partnership with ABN AMRO clearing bank. He worked on the open outcry trading floors at the London International Financial Futures Exchange 'LIFFE' and the London Metal Exchange 'LME.' He also provided research and execution services for Goldman Sachs, JP Morgan, Credit Suisse, Schroders Asset Management, and Pennsylvania State Public School Employees Retirement System, as amongst others. Today, he focuses on providing trading consultancy and business development services for family office and brokerage clientele.

Published by
Written By: Elliott Laybourne