Technical Analysis and Market Entry: MIOTA Price Drop Further Entices Greater Buying
- IOTA Foundation reported a hacking which saw some $1.6 million stolen from ten high-value accounts.
- MIOTA price action was victim to a pullback, however, buyers are likely to find some interest again around current levels.
IOT/USD: Recent Price Behaviour
Price action has fallen back within the control of the market bears, following a strong run to the north seen already this year. Given the current downside momentum, IOT/USD was forced to close in the red for the first time since the week of 20 January. It is more significant to note, however, that this was the worst weekly performance observed since the week of 18 November.
Before the noted closure in the red, the price had been running consecutively to the upside for more or less seven straight weeks. IOT/USDT within the noted period gained a chunky 148%, rallying from depressed levels of $0.1500 up to highs of $0.3700. The bulls were able to push the price up to the highest levels seen since July 2019.
IOT/USDT has managed to catch support on the 50% Fibonacci, as part of the swing low from 18 December to the swing high 3 February. The price was able to previously cushion here seen on 11 February, resulting in an extension to the north after touching. Resistance should, however, be noted just ahead at the 38.2% Fibonacci, which could now likely act as a barrier. The noted level is seen tracking at $0.2850.
IOTA Network Shutdown Following Hacking
The IOTA Foundation recently reported that there had been violations on their network. Hackers exploited bugs stealing as much as $1.6 million from around ten high-value accounts. Following the attack on Wednesday, 12 February, IOTA took the cryptocurrency’s “Coordinator” node offline, effectively barring any further value transactions from occurring. The organisation at the time also advised users not to open the Trinity online wallet until the vulnerability had been patched.
They have now announced fixing the bug in the desktop cryptocurrency wallet, however, the network has remained offline since last week Monday’s release of a new version of the desktop edition of Trinity allows users to check their balances and transactions. “This version (1.4.0) removes the vulnerability announced on 12 February 2020,” IOTA said in an advisory. They added: “The Coordinator remains down for now as we finalise our remediation plan. You will not be able to send value transactions.”
In terms of trade opportunities, for the bullish bias to come right back into play, the price will need to break above the noted 38.2% Fibonacci, $0.2850. A daily closure above here and retest would be attractive for a buy position. Target to the north would be eyed at; $0.3500, $0.3800 and then $0.4000. Stops would be placed at $0.2500.
Should the price fail to close and hold above the noted resistance, then eyes will be on a pullback down to the 61.8% Fibonacci, $0.2400-0.2300. A buy position would then be of interest here, with the same targets as noted above, stops however at $0.2200.
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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