Iota had a negative session on Wednesday, reaching down towards the 0.52 level again against the US dollar. The market has seen plenty of support in that general region, so I think that the buyers may return rather soon. Crypto currencies had a tough day overall, but they do tend to move in concert with each other. Because of this, I think that if Bitcoin rallies, or some of the other larger ones, Iota should as well. I recognize that there is a lot of noise in this area, so it may take some time to build up the necessary momentum to bounce significantly. Having said that, I believe it’s only a matter of time before we can start going long again, but right now it may be a bit too early.
Psychological support just below
The $0.50 level of course is psychologically important as it is a large, round, whole number. I think that the market will eventually find enough support between here and there, so I’m looking to build up a position slowly. By being able to build up a position slowly, you can ride out a lot of the volatility that will undoubtedly be a part of this region. The $0.57 level above being broken would be a significant sign that the buyers are taking control again, and probably send this market into a bit of a frenzy as it would form a “W pattern” on the hourly chart. If we were to break down below the $0.50 level, I think that would be a very negative sign.