Technical Analysis and Market Entry: IOTA (MIOTA) Makes Bullish Flag Breakout
- IOTA (MIOTA) has regained some bullish momentum, after a breakout from a bullish flag pattern.
- The IOTA Foundation is revolutionizing and exciting the car market, with talk now of a potential Ford partnership.
MIOTA: Recent Price Behavior
IOTA’s native token MIOTA has managed to catch a strong bid today, 11th May, huge thanks to the broader market upside lead by bitcoin (BTC). At the time of writing, MOITA was seen up in the session a significant 7%, the largest daily gain since 29th April. Before the current gains of Saturday, the price had been cooling, reversing the late advance of April.
Bullish Flag Breakout
The easing south over the past couple of weeks saw the price dropping around 15% before life was kicked back into the bulls. A sharp rejection was seen at the 38.2% Fibonacci, which is seen at $0.3290, a known area of supply. The area could be seen running from $0.3200 up to $0.3370, which has previously proven to slow down the bulls.
Over the noted easing period, price action formed a bullish flag pattern structure, which playing to the textbook was subject to a breakout. The bulls managed to capitalize on this forcing a powerful breakout to the upside, as seen in the session today. Given the pattern being breached, it was left the door open for further buying pressure.
IOTA Revolutionizing Car Market
There has been some excitement sparked around the IOTA Foundation this week. A tweet surfaced that picked up much attention, detailing that Ford Germany visited IOTA Labs to see a proof-of-concept and explore a potential use case that the organization created. The suggestions are that Ford Germany may be considering a partnership of some sort with IOTA Labs.
This comes after a new deal was announced in April with Jaguar Land Rover and IOTA, as covered by Hacked’s Greg Thompson. At the time it was reported that IOTA cryptocurrency wallets had already been installed and tested in vehicles. The likes of the Jaguar F-PACE and the Range Rover Velar underwent the testing.
Given the most recent flag breakout, eyes are on further potential upside. However, a daily candlestick closure would be a decent confirmation of buys. In terms of point for entry, it would be worth waiting for a retest of the broken pattern formation. Upon a daily closure above and then pull back on top for the flag, around $0.2900-$0.2850, a buy would be attractive.
The initial upside target would be the 38.2% Fibonacci/supply area again, $0.3290. Further north then $0.3580, the top trend line of the wedge pattern in which the price is confined within. Lastly, $0.4000, the 2019 high area, in proximity to a zone of supply and the 61.8% Fibonacci, should be eyed. Once an entry has been achieved, stops to be placed just below the flag and wedge at $0.2600.
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.