IOTA Price Analysis: IOT/USD Trying To Sustain Its Breakout
IOTA broke down from a symmetrical triangle chart formation to signal that bearish pressure is picking up. The chart pattern spans 1.2000 to 2.6000 so the resulting selloff could be of the same height.
The 100 SMA is above the longer-term 200 SMA to signal that the path of least resistance is to the upside. However, the gap is pretty narrow so a downward crossover could still ensue and draw more sellers in.
Stochastic is on the move down to show that selling pressure is present. RSI is also heading south but is dipping into oversold levels to indicate that bears are getting exhausted.
In that case, price could still bounce back to the broken triangle support for a quick retest before resuming the drop. A return in bullish pressure, however, could lead to a move back up to the triangle resistance or the 2.0000 major psychological level.
The dollar has gained ground versus higher-yielding counterparts such as stocks and commodities when risk aversion returned on fears of a trade war. Although some US officials sought to reassure markets, the announcement of Cohn’s resignation revived protectionist concerns.
Recall that Trump recently announced plans to impose higher tariffs on steel and aluminum imports, likely resulting to retaliation from US trade partners. Cohn has been one of the advisers pushing for a more diplomatic in tackling these trade issues and it’s likely that his resignation was a result of disputes on tariffs.
Rumors that IOTA could launch beta testing of smart contracts could prop the cryptocurrency back up, though. However, there have been emails leaked that would have had repurcussions for IOTA had they contained any substantial proof of vulnerability.
In a tweet, Dominik Schiener clarified:
“As an organization, we have tried to stay out of the DCI controversy, and leave it to the individuals involved to lead the discussion. However, there is one public clarification to make: no Foundation member was involved in the email leaks in any way.”