It’s the same script for most of all these alt coins and one key development that we can pick-of course apart from bears in over drive-is the close below our key support marked by the middle BB.
We can even be tempted to sell now, but unfortunately if you do so, it will be a raw deal and it would be preferable if you had hitched prices at around $4.2 or $5 when IOTA bears and bulls were still battling for control.
That was then but now, we shall reiterate the importance of December 22 lows as shown by week ending December 24 candlestick.
Overly, IOTA prices are $0.45 above it with $1.56-which was also our previous take profit-acting as immediate resistance.
Besides, do you notice that $1.1 is around August 2017 highs from which we expect IOTA to find support? That’s how significant that level is and we shall be watching how prices react to it today.
Going on to the daily chart and we cannot miss to see those strong bear candlestick/momentum banding along the lower BB.
As long as price action remains this way, we shall remain bearish. Our Fibonacci retracement levels goes on to show the significance of the 78.6% retracement level and how it flash with August highs which just a couple of cents away from $1.1.
Unlike in the weekly chart, the daily chart momentum is waning but it will mean nothing if prices are depressed and remain below the middle BB and $2.25 (61.8% Fibonacci retracement level) which is our immediate resistance lines. All we want to see today is the confirmation of yesterday’s double bar bullish reversal pattern.
Here, things are pretty straight forward. We have a trend dividing resistance trend line can has been a strong liquidating line. All that is needed is for buyers to confirm that bullish divergence line and the momentum prices close above $2, then we can begin hunting for long opportunities in shorter time frames.