Iota (IOT/USD) Analysis November 29, 2017

IOTA analysis

Iota (IOT/USD) Analysis November 29, 2017

For internet of things supporters and IOTA proponents, it’s payback time. IOTA by itself is a unique block chain platform and it’s no secret that it offers something in return for adopters and early users.

 In the last 24 hours alone, it has added a massive 40.18% as its market capitalization rose to $3.215B. The question now is:  Will this rally last? Well, from a technical perspective, it depends on if IOTA bulls clear immediate highs of $1.3. This level was tested during launch week.

 Borrowing from Fibonacci retracements, we note that despite the current rally, correction was deep and as the chart shows, price action reversed from below the 78.6% Fibonacci retracement level.

This means that we expect strong price reaction at $1.3 as Fibonacci correction rules point to in similar reversal situations. Then again, we are in a bullish run but we must anticipate headwinds in case of sustained USD bulls and a consequent reversal. This support is at $0.98 which was the previous highs broken through this week.

It’s 2 days into the week and IOTA bulls have pumped $0.35 into  IOTA causing it to surge past August 17 highs of $1.1. Given the speed of this pump, today we shall simply take a wait-and-see approach to see if IOTA shall close above $1.1 which is now our immediate support line. There is a stochastic buy after a brief depreciation in the last days of last week but now prices are bouncing back.

It’s 2 days into the week and IOTA bulls have pumped $0.35 into  IOTA causing it to surge past August 17 highs of $1.1. Given the speed of this pump, today we shall simply take a wait-and-see approach to see if IOTA shall close above $1.1 which is now our immediate support line. There is a stochastic buy after a brief depreciation in the last days of last week but now prices are bouncing back.

I’m of the opinion that initiating any long position from the current price level will be doing so at peaks. In the daily chart, we can see some bit of USD bull pressure and this is even clear in the 4HR chart.

Then again, 2 days in IOTA is up $0.35, it took 7 days for IOTA to move $0.38 the week before last and that is why logic dictates that IOTA might be over-extended.

Either way, there is a stochastic sell signal in place and since we use this indicator to fine tune our entries, we shall wait until a buy signal is printed probably at around our buy zone marked at around $0.98 and $1.1.

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