IOTA / USD Technical Analysis: Game Changer
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- IOTA is bullish in the short-term, with the cryptocurrency trading well above its 200-period moving average
- The medium-term outlook remains bearish for the IOTA / USD pair, with the cryptocurrency still trading below its 200-day moving average
- Both time frames show potential inverted head and shoulders patterns building
IOTA / USD Short-term price analysis
In the short-term, IOTA has a bullish trading bias, with the cryptocurrency trading well above its 200-period moving average of the four-hour time frame.
The four-hour time frame shows multiple inverted head and shoulders patterns, with price trading close to the neckline of the bullish patterns.
If an upside breakout does occur, the larger bullish pattern’s overall bullish objective will likely be the November 15th trading high from last year.
IOTA / USD H4 Chart (Source: TradingvView)
Pattern Watch
Traders should note the target of the smaller bullish inverted head and shoulders pattern on the four-hour time frame will likely be the current 2019 trading high.
MACD Indicator
The MACD indicator on the four-hour time frame remains bullish, with the MACD signal line crossing higher.
Relative Strength Index
The RSI indicator on the four-hour time frame is bullish, although downside pressures are building.
IOTA / USD Medium-term price analysis
IOTA remains bearish in the medium-term, with the cryptocurrency still unable to move above its key 200-day moving average.
The daily time frame clearly shows two potential inverted head and shoulders patterns that could start to take shape over the medium-term. The upside projection of the smaller inverted head and shoulders pattern would take the IOTA / USD pair towards levels not seen since October 2018.
Technical indicators on the daily time frame remain bullish and continue to signal further gains ahead.
IOTA / USD Daily Chart (Source: TradingView)
Pattern Watch
It is worth noting that the IOTA / USD pair’s 200-day moving average is located just below the neckline of the smaller inverted head and shoulders pattern.
MACD Indicator
The MACD indicator on the daily time frame is bullish and generating a buy signal.
Relative Strength Index
The RSI indicator is bullish on the daily time frame, although it is starting to correct lower.
Conclusion
The presence of multiple inverted head and shoulders patterns on the four-hour time frame highlights that the IOTA / USD pair has scope to trade much higher over the short-term.
A sustained technical breakout above IOTA’s 200-day moving average would be a game changer for the cryptocurrency over the medium-term, although caution is advised until a bullish breakout is confirmed.
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