Iota initially fell on Wednesday, but found enough support near the $0.60 level to turn around and break above the $0.67 level. With this in mind, we are now testing the $0.70 level, which could offer a bit of psychological resistance.
Ultimately, I think that this market is facing an uphill battle until we can clear the $0.77 handle. The crypto currency world is looking a bit more bullish during the session, and of course the US dollar has been pummeled in the Forex world, so that should help cryptos as well.
Because of this, it’s likely that this market will develop a “buy on the dips” mentality. However, keep in mind that the volume is somewhat thin, so sudden and sharp reversals can happen.
Support at $0.60
I believe that if we can stay above the $0.60 level, the market will attract more money and inflows. Once we break to the upside, and perhaps above the $0.0, the market will go looking for the $0.90 level next. If we did breakdown below the $0.60 level, I think then we go looking for the $0.50 level, which would be even more in the way of psychological support.
I think the one thing that you can count on is volatility in the Iota/USD pair, as we continue to see a restructuring of market sentiment when it comes to crypto currencies.
Keep an eye on Bitcoin and Ethereum, because those are much larger markets, which of course have a bit of a “knock on effect” over here. If they start selling off rapidly again, this market will sell off even quicker due to its lack of volume. Longer-term though, I would suspect this market should continue to go to the upside, and perhaps looking for the $1.00 level above.
Even if we do break down, it’s probably going to be a short-term decline.