IOTA Token Price Analysis: IOTA Token price is resting in the demand zone, will it bounce back?

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  • The price of the IOTA token fell after facing strong rejection from the supply zone.
  • The price of the IOTA token is trading in an ascending parallel channel on a daily timeframe.
  • The IOTA/BTC pair is trading at the price level of 0.000013 with a decline of -0.89% in the last 24 hours.

The price of the IOTA token is bullish on a longer time frame. As the price action suggests, the price of the token is trading at the bottom of the ascending parallel channel on a daily timeframe. Recently, the global cryptocurrency market faced strong downward pressure, which affected the price of the IOTA token as it fell into the demand zone. The recent decline has led to the collapse of the important short-term supply area. Right now, the price of the IOTA token is forming higher and lower formations on a daily timeframe. The breakdown of the demand zone to a lower timeframe was done with a strong bearish candlestick pattern. Therefore, the token price saw a one-sided drop without any pullback. For the price of the IOTA token to rise, it must form a strong bullish signal in the demand zone. The price of the IOTA token also broke above the 50 and 100 moving averages during the recent downside pressure. The price of the token also broke the 14 SMA. Moving up, the token price can be seen facing strong rejection from these MAs. The price of the IOTA token fell back to the lower band of the Bollinger Band indicator after failing to break above the upper band. Volumes increased as the price of the token fell. A consolidation before a new bullish movement is inevitable. Investors should remain cautious and wait for an appropriate reversal signal and then act accordingly.

The price of the IOTA token is trading in an ascending parallel channel on a daily timeframe

Average Directional Movement Index: The ADX curve has been plunging for a few days after rising. As the symbolic price broke through the demand zone, the ADX curve also fell rapidly. Right now, the ADX curve is plunging as the price of the token is also falling after strong bullish momentum. The fall in the price of the IOTA token led to the formation of a bearish flag and pole pattern within 4 hours. Once the price of the token breaks through the flag and pole pattern, the ADX curve can also be seen falling with the trend.

Moving average convergence divergence: The MACD indicator gave a negative crossover as the token falls after the breakout of the supply zone on a daily time frame. The blue line crossed the orange line downward. This caused the price of the token to drop sharply. Once the price of the token starts rising again after retesting, the MACD indicator can give a positive cross and the gap between the blue and orange lines can be seen widening to support the trend. As of now, the symbolic price is consolidating and the same is represented in the MACD indicator as the MACD lines are close to each other.

Supertrend: IOTA token price is bearish on a shorter time frame following the general sentiments in the cryptocurrency market. The recent decline has caused the token price to drop rapidly towards the demand zone. As a result, the price of the IOTA token broke through the super trending buy line. As of now, the supertrend indicator has triggered a sell signal. Going up, the token price may face strong rejection from the supertrend sell line and so investors should remain cautious.

CONCLUSION: The price of the IOTA token, according to the price action, is bullish for a longer time frame. On a shorter timeframe, the price of the token dropped as it hit the supply zone. The technical parameters are bearish illustrating the trend in a lower time frame. It remains to be seen whether the price of the token will bounce off the demand zone or not and break it.

SUPPORT: $0.25 and $0.27

RESISTANCE: $0.35 and $0.39

Disclaimer

The views and opinions expressed by the author, or anyone named in this article, are for informational purposes only, and they do not constitute financial, investment or other advice. Investing in or trading crypto assets involves the risk of financial loss.

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