IOTA Price Analysis: IOTA Announce Another New Partnership, but Bulls Must Breakout from Bearish Set-Up
- IOTA announces new collaboration with RIDDLE&CODE for transactions on IOTA Tangle.
- Bearish technical set up is still eyed for IOT/USD; bulls must breakout, or be punished.
IOTA Collaborates RIDDLE&CODE
A new partnership has recently been announced from the IOTA Foundation with RIDDLE&CODE, a blockchain-based hardware and software company. This collaboration is set to facilitate transactions on IOTA Tangle, of which will be autonomous machine-to-machine.
The partnership between IOTA and RIDDLE&CODE will extend trust to the data source, for it to become trusted. It will leverage decision making based on IoT data, to facilitate the technology limiting to designated data sources that play a role.
This will remove the “garbage in, garbage out” issues and paving the way for automated M2M payments. RIDDLE&CODE’s Secure Element microchip is tamper-proof, which facilitates to store the digital identity (private key) securely on any given device.
Furthermore, it will also allow for significant enhancements. A large improvement over existing technologies, that can currently be easily copied or cloned such as QR codes, that are used to acquire data from physical objects.
Technical Review – IOT/USD
A decent pick up has been observed over the past two sessions for IOT/USD. Gains have been seen just shy of 9%. The price managed to receive much needed support, from a lower trend line. This is actually part of a larger bearish pennant pattern formation.
The mentioned technical observation has been in play since the back end of November, as the price battled to try and find its feet. A chunky sell-off has hurt IOT/USD from 7th November, as a result having lost over 50% over this period.
Price action has stabilized, after forming a bottom area around the $0.2600 territory. A narrowing has been seen, as a result forming the mentioned pennant. Given current price behavior, it does suggest a breakout could be right around the corner.
Immediate resistance should be noted at the upper trend line that has formed this bearish technical set up. This can be seen tracking around $0.2950. The bulls really must break this to prevent the pattern playing out to the textbook and falling deep to the south.
Should the bulls manage to cause an upset to the bears and breakout from this, there could be some serious room to fly. There isn’t much in the way of resistance until $0.4400 area, where the price consolidated briefly between 14-18 November, before resuming drop.
Further north, a return back up to the $0.5000 territory would be probable, where a supply zone is seen. IOT/USD had been trading here last on 14th November, before the free-fall mode kicked in. This would be the next major challenger for the bulls to breakdown.
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.
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