Market Analysis

IOTA Technical Analysis – Important Fundamental Updates Paint Bullish Picture

The permissionless and open-source DLT lost its 17th place in the capitalisation benchmark, being outperformed by ChainLink a couple of weeks ago. However, IOTA Market Cap increased over $10M during the first few days of July. The cryptocurrency capitalisation went from  $1.08B by the end of June to $1.10B in July. Volume has remained without significant variations.

On July 2nd, IOTA Foundation released the long-awaited Trinity Wallet. In addition, the Senior Research Scientist at IOTA, Dr. Luigi Vigneri already announced that the team is working on a new algorithm to “deal with network congestion and prevent spam attacks in the Tangle”.

On the technical panorama, IOTAUSD keeps maintaining its triangle formation. Nonetheless, what calls the most attention is a rejection of the 0.3600 support level. Price action has made multiple rejections of the current level (the 20th of June being the last of them). If price bounces strongly from the grey psychological level and broke the descending channel (highlighted in red), then we can see some interesting moves in the pair.

The first scenario contemplates another leg a new leg to the upside from the current level. If bulls manage to break the $0.3900-0.4100 zone, the next target will be the $0.4700 supply zone. If a significant “Altcoin season” starts, then IOTAUSD could easily reach the previous high at $0.56.   On the contrary, the bearish scenario considers a rupture of the 0.3600 level. In that case, bears could push the price to the $0.2969 demand zone.

It is important that traders keep a close eye on weekly and daily closure. Last week candle closed as Doji, just above the yellow zone. If this week candle closes bullish, this could be a great sign for a long entry.

Post a Comment


Delivered daily, straight to your inbox.

Select your currency
GBP Pound sterling