Technical Analysis and Market Entry: IOTA’s Bearish Structure Subject to a Breach
- The MIOTA price remains under pressure; further downside appears to be on the cards.
- Price action via the daily chart view has formed a bearish pennant structure.
- IOTA Foundation recently announced a partnership with tech giant STMicroelectronics; this did little for the MIOTA price.
MIOTA: Recent Price Behavior
MIOTA has been under much downside pressure, something that is seen across the entire cryptocurrency market. The price is stuck within a stubborn and aggressive trend to the south. This has been the case since late June. MIOTA was trading up at the heights of $0.4900 before giving way to the bears.
Moreover, the price has dropped as much as 43% since 26th June; market bears forced a breach of a critical daily ascending trend line of support. A bearish pennant structure could be seen ahead of the selling pressure being turned up a notch. The breakout was completed, which exacerbated the move south.
IOTA Partnership with STMicroelectronics
The IOTA Foundation recently announced that is partnering with European tech giant STMicroelectronics, a global semiconductor leader that offers a wide variety of electronic applications. The collaboration between the two organizations will be to construct a new highly powerful, streamlined and cost-effective access to Internet of Things (IoT) functionality.
In terms of the partnership, it will see the integration of the IOTA Tangle technology for a fee-less P2P solution. STMicroelectronics’ STM32Cube expansion software for the industry-leading STM32 32-bit MCU ecosystem, the X-CUBE-IOTA1, will be integrated. STMicroelectronics’ community will be able to take advantage of being able to easily and quickly create and prototype new IoT solutions for single or multiple devices.
In addition, developers will have the ability to develop systems, environments, products and services. To conclude, it is a massive boost given IOTA functionality and the power of the Tangle’s distributed, highly scalable peer-to-peer network and fee-less structure.
Following the recent steep price decline, MIOTA is again moving within another bearish pennant/flag structure. The consolidation behavior has been seen over the past ten sessions, subject to an imminent breakout. Given this described price formation, further downside is still eyed.
Furthermore, support should be noted immediately at the $0.3000 mark, where the lower acting trend line of the pennant is tracking. Should the bears manage to force a breach, then a stronger wave of selling pressure could very well be seen. Targets to the downside would be at $0.2500 and $0.2000. Stops would be placed just above the structure at $0.3500.
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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