In the last month, while the majority of the altcoins has lost value and trading volume, IOTA has experienced an increase in its market capitalisation and in its trading volume. Since approximately the 15th of August, IOTA’s Market has added over $100m USD (with valuation going from $623.5m at the beginning of August to currently being $733.4m USD). Regarding volume, last week alone, IOTA reached almost $11.2m in less than 24 hours!.
The distributed ledger for the Internet of Things does not only looks good in volume and market cap, but also in the weekly and daily timeframe. If we break down IOTAUSD’s weekly chart, it is evident that price action is testing a key demand level. The $0.22 level has worked pretty well in the past as an area of support. The named zone has been tested in December 2018 and April 2019 respectively, and in both cases, IOTAUSD spiked over 85% after reaching the mark.
On Sunday, the weekly candle closed above the $0.22 zone. If bulls find the current level attractive once again, we may be seeing IOTAUSD reaching $0.32 between this week and next week. The area highlighted in blue ($0.32) would be our first take profit, as it is an important liquidity zone in the daily and weekly timeframe. If this level gets broken, then the next target is the $0.39 mark (50% Fib level)
As usual, we stick to risk management, so the trade idea must be taken with caution. BTC Dominance is still significantly high and the altcoin market has not signalled a recovery, that’s why IOTA’s enthusiasts must be alert and monitor the coin’s price action.
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