IOTA (IOTA) is nearing the end of its pattern, but price action and technical indicators are not giving clear signals as to the direction of the next move.
IOTA has been falling since the week of April 12th to 19th. The downward movement is contained in a symmetrical triangle, which is considered a neutral pattern. Hence, breakouts and breakouts are equally likely.
While the support line was only confirmed twice (green icon), the resistance line was confirmed at least four times (red icon).
Other than the triangle being a neutral pattern, both the MACD and RSI show a neutral outlook.
The MACD, formed from the short-term and long-term moving averages (MA), lies directly on the zero line, ie the short-term MA moves at the same speed as the long-term MA.
The RSI, a momentum indicator, is right at the 50 line. This is also a sign of a neutral trend.
Hence, it is necessary to look at the lower time frames to determine the direction of the trend.
Weekly IOTA / USDT Chart | Source: TradingView
The daily chart also offers an opaque outlook.
The token has been trading in a range of $ 1.18 to $ 1.48 since the beginning of October, although it appears to have started an upward movement after creating a long wick underneath it on November 16 (green symbol), but the price moved out of the $ 1.48 zone on November 17th and fell back thereafter.
Additionally, the MACD and RSI are on lines 0 and 50 respectively, similar to the weekly time frame.
Hence, a breakout or breakout of the area is required to determine the direction of the next movement.
IOTA / USDT daily chart | Source: TradingView
Trader @ Mesawine1 sketched the IOTA chart, indicating that it is moving within a triangle, waiting for a clear breakout of the triangle.
The source: Twitter
Just like the weekly time frame, IOTA appears to be trading within a short-term symmetrical triangle. As mentioned above, this is a neutral pattern.
However, since it occurs after a downward move, it could be wave B. This means that once the triangle is complete, another downward move will complete Wave C and lead to new lows.
However, this pattern remains unconfirmed and uncertain due to the ambiguity of the technical indicators.
Hence, the direction of future movement will determine whether the price breaks the $ 1.12 low or the $ 1.48 high first.
IOTA / USDT 6-hour chart | Source: TradingView
You can see the IOTA price Here.
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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
According to Beincrypto