Technical Analysis and Market Entry: IOTA (MIOTA) Prepares for Dip Before Big Bulls Return
- The IOTA (MIOTA) price has been within the control of markets bears after losing much upside momentum.
- Another price dip is eyed down to a big buying area ahead of a further committed push north.
MIOTA: Recent Price Behavior
IOTA’s MIOTA has been on the back foot since the back-end of June. The price had run up to a high point of $0.4850 before being hit by sellers. There was much promise following a strong push north that commenced at the back-end of April. The price advanced a whopping 130% between the period of 26th April up to 31st May. It reached its highest level that had been seen since October 2018 up at $0.5520.
Buyers failed to capitalize on a bullish flag structure, which began during the most recent consolidation period following the buyers losing momentum on 31st May. A breakout below the flag or ascending channel structure was recently seen on 27th June, which has also seen a retest. The technical behavior has left the door open to further potential downside pressure.
Over the last six sessions, since the sellers forced the price below the above-detailed pattern, a further period of consolidation has been seen. During the noted time, a bearish pennant structure was observed, which is very much subject to a potential breakout south. The lower supporting trend line is tracking around $0.3860. A breach of the noted area could send the price down to a demand zone, the $0.3400-$0.3200 range.
IOTA Launches Trinity
The IOTA Foundation recently released Trinity, a secure software wallet for IOTA tokens. The wallet brings significant improvements in simplicity and security for its user users conducting transactions in IOTA. Trinity being a software wallet is designed for compatibility with Ledger’s hardware wallets (IOTA had integrated with Ledger back in November 2018).
Thorough and successful beta testing was conducted with Trinity: Over $1.8 billion of IOTA was transacted and more than 160,000 downloads across platforms. The full release of the Trinity wallet is now available for mobile and desktop platforms, including Mac, Windows, Linux, iOS and Android.
Given the noted bearish pennant structure, eyes are on further downside pressure for now. The below area of interest would be $0.3400-$0.3200, where a decent demand zone can be seen. The area historically has proven to find buyers and long positions from here would be attractive.
In terms of upside targets, they are: $0.4600, $0.5150-$0.5200, $0.6200 and then $0.7200. Stops would be placed just below the buying area at $0.3000, leaving enough breathing room. Should the noted zone of interest fail to support the price, then further downside areas of note are $0.2500 and $0.2000.
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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