IOTA is actually breaking barriers and within two weeks, price action is trending above two key levels of resistance as projected by the Fibonacci extension level drawn from June’s high low.
At current prices, that stubborn price range from where we based our extension levels looks minute. This is funny because before June’s highs were broken, chances of further higher highs were low safe from the bullish stochastics turning from deep the oversold territory.
Well, prices did move and from the look of things, $3.2 is going to be a reliable support. You may be wondering what this level is. From Fibonacci extension, you note that $3.2 was a key resistance level where price action was supposed to react at but rather IOTA bulls blasted through it earlier this week. However, prices are now slowing and should correction continue below $3.2 then we should watch $2.
From the daily chart, IOTA have been overextended for quite some times now. From December 3 when IOTA surge begun, IOTA gained $2 but look at what happened after December 5. From the chart we can see that a whole candlestick formed outside the upper BB and today, USD bulls are driving prices lower.
Better still, there is a stochastic sell signal turning from deep the oversold territory. From December 6th candlestick characteristic, it is easy to note that bear pressure was strong after it closed with long upper wick with barely not buy pressure leading to today’s bears follow through.
While I understand that bulls are in charge in the weekly time frame, a retracement to correct this week’s overextension is lucky.
In the daily chart, chances of lower lows is high and should there be a trickle below main support as highlighted in our entry chart, it will mean USD bulls are in charge.
Notice how the 20 period MA has been tested with increasing bear momentum. Moreover, this is the first time in more than 10 trading days that our flexible support is being retested. From daily chart developments, $3.2 is likely to be broken.