IOTA / USD Technical Analysis: More Pressure Needed
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- IOTA is neutral in the short-term with price consolidating inside a descending triangle pattern
- IOTA / USD is attempting to break higher in short-term as the broader cryptocurrency market advances
- Medium-term outlook remains bearish with the cryptocurrency still trading at historically weak levels
IOTA / USD Short-term price analysis
In the short-term, IOTA has a neutral trading bias with price consolidating inside a triangle pattern on the four-hour time frame.
IOTA / USD buyers are attempting to take control of price-action, although bullish momentum remains fairly weak on the mentioned time frame.
If an upside breakout does occur, IOTA may rally towards the January 19th trading high, while a break lower under the triangle pattern will encourage sellers to target the February 14th trading low.
IOTA / USD H4 Chart (Source: TradingView)
Pattern Watch
The formation of a bullish inverted head and shoulders pattern may start to take shape on the four-hour time frame if the IOTA / USD pair stages a strong upside rally.
MACD Indicator
The MACD indicator on the four-hour time frame is slightly bullish, although no clear trading signal has emerged.
Momentum
The Momentum indicator on the four-hour time frame is neutral and shows no clear trading bias.
IOTA / USD Medium-term price analysis
IOTA remains overwhelmingly bearish in the medium-term, with the cryptocurrency still trading well below its 200-day moving average and also failing to stage a meaningful rally away from the worst trading levels of 2018.
The IOTA / USD pair may be forming a bullish double-bottom pattern on the daily time frame, although the cryptocurrency will need to stage a significant rally before a second major technical low is confirmed.
IOTA / USD Daily Chart (Source: TradingView)
Pattern Watch
A potential inverted head and shoulders pattern might start to take shape if a bullish rally was to occur towards the pair’s 200-day moving average.
MACD Indicator
The MACD indicator on the daily time frame is neutral and is currently generating no clear trading signal.
RSI Indicator
The RSI indicator is bullish on the daily time frame and is signaling that buyers currently have the upper hand.
Conclusion
IOTA may be attempting a bullish breakout towards its 200-day moving average over the medium-term. Traders should wait for a sustained breakout on the four-hour time frame before turning bullish on the pair over the short-term horizon.
Overall, the IOTA / USD bulls have significant work to do in order to shift the bearish medium-term bias currently surrounding it.
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