IOTA Price Key Highlights
- IOTA recently rallied past a key resistance at 0.5500 and reached the .7000 area before pausing from the climb.
- This could mean that a pullback to the area of interest is in order and the Fib tool shows the potential support zones.
- Price is also moving above an ascending trend line connecting the lows since mid-August.
IOTA is on a tear but might need to make a quick correction to gather more bullish energy from here.
Technical Indicators Signals
The 100 SMA is above the longer-term 200 SMA to signal that the path of least resistance is to the upside. In other words, the uptrend is more likely to resume than to reverse. The gap between the indicators is also widening to signal strengthening bullish pressure.
In addition, the 100 SMA lines up with the 50% Fibonacci retracement level to add to its strength as support around the area of interest. The 200 SMA lines up with the rising trend line just below the 61.8% Fib to serve as an additional barrier also.
A bounce off any of the Fibonacci levels could bring in bullish pressure and allow IOTA to resume the climb to the swing high or higher. A break below the lowest Fib and trend line, on the other hand, could mean a selloff.
IOTA’s rally stemmed from its partnership with Fujitsu to be integrated into its manufacturing and supply chain verticals to enable better transparency, data trust, and data security. According to the paper the company released:
“Fujitsu is well-equipped to help roll out IOTA as the new protocol standard as we are experts in both IT services and the manufacturing of IT products.”
This supports the legitimacy of IOTA in terms of practical use and placed the altcoin in a better position to take advantage of the risk rally so far this week.