After sustained bear pressure IOTA is now trading below $4.2 and $5.5 main resistance levels. If bear candlesticks continue to be printed-in this or lower time frame, then this week’s candlestick shall be concluded as a double tops confirmation. Therefore, we shall flip our projection and look for short term sells next week.
After all-regardless of the multi-level break and close above, IOTA need to slow down as we have mentioned several times before. So far this week, $3 has been tested but rejection of those prices are shown by the long lower wick meaning buy pressure is building up in lower time frames as bulls probably snap back to trend.
Overly, my recommendation is for buyers to load up their portfolio with IOTA longs the moment critical resistance levels have been broken in the lower time frame. That begins the moment price action close convincingly above $4.2 in the daily or 4HR charts.
Like most alt coins, accumulation or consolidations are visible in the daily chart. In our case, the lower and upper limits of IOTA price action are between $3.3 and $4.2. It has been like that for the past one month safe the dip on December 22.
Conservative traders should use this time frame as the first filter before fine tuning entries in our entry chart. For buyers to gallop, $4.2 must be cleared. That’s mandatory and for that to happen, prices must first close above the middle BB.
If not, the path of least resistance appears to be bearish and that requires USD bulls to close below $3.3 as sellers aim for $1.1. It can pan out in either way but chances of lower lows remain high since last week was bearish and we saw that strong rejection of IOTA prices above $4.2.
After zooming in, it’s clear that IOTA has been in consolidation mode and currently, bears are testing the lower limit or main support. Already, there is a pin bar and if prices are to recover and bounce back towards $4.2 main resistance then the middle BB must first be cleared. Any confirmed bear break out below $3.3 invalidates this bull projection.