IOTA Price Analysis: Daily Candle Being Held by Vital Near-Term Descending Trend Line

 

  • .MIOTA bulls have a big near-term challenge, attempting to break above an 8-week descending trend line.
  • A failed break above the mentioned resistance, could see a complete reversal of the latest bull run.

IOTA’s native token MIOTA has enjoyed a firm consistent bull run of late. The price having gained 18% over the past eight going on nine sessions. It is running at three consecutive sessions of closing on the daily in the green. Bulls however today have been halted by a strong near-term descending trend line, which could hamper further gains.

MIOTA/USDT daily chart

Near-Term Key Resistance

The above-mentioned descending trend line has been running from 22nd September.  After this, the price met the resistance again, between 8-9th October. A firm rejection was observed, which saw the price drop over 21%. At the time, that fall saw the price at the lowest level seen since 23rd August. It has remained firmly below this since its formation.

There are several confluences in the near-term to back the bearish bias. Firstly, as mentioned with the descending trend line. Secondly, this is in proximity to the 38.2% Fibonacci, which is seen at $0.5200. Lastly, there is a supply zone sitting where the trend line and 38.2% Fibonacci track, $0.5230-0.5400. The price most recently fell victim of this supply on 18th October.

Downside Targets

Looking at the downside targets, should the bears manage to regain full control, eyes will be on support seen around $0.4880, which is where the 23.6% Fibonacci lays. This proved to be a sturdy near-term area of comfort, having supported the price for 8 sessions, from 19th to 26th October. Should this fail to hold, a complete reversal of the latest bull run could be seen back below $0.4400.

Upside Targets

On the other hand, if this daily candle manages to breach and close above the tough area of resistance it could leave the door wide open to a chunky new wave of buying. The first near-term target would likely be $0.5409, 50% Fibonacci and the 18th October high. A rejection the last time the price met with this resistance saw a gradual fall back down to the 31st October low, just below $0.4400.

Looking further to the north, a return to $0.6000 will come back into play, should the above-mentioned be cleared. The price last traded here between 8-9th October, before seeing that initial heavy drop of over 20%. Lastly, a retest of the 23rd September high up at the $0.6500 territory would then be watched, where the running descending trend line started its formation.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Author:
Ken has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.