It’s no doubt that IOTA buyers are in charge especially after last week’s highs. I was really hoping for some sort of lower lows and a correction towards $2.8 but it looks like after that dip early last week, buyers were buoyed.
This pressure in my opinion is likely to continue now that all we are seeing is a couple of higher highs and consecutive bull candlesticks now aligning themselves along the upper BB in sync with the general buy pressure.
From now henceforth, the 3rd Fibonacci extension at $3.9 shall be our immediate support while $5 will act as a short term resistance.
In the daily chart, IOTA prices are in consolidation mode despite that bearish candlestick on December 22 that appeared to have triggered sell pressure.
We have to be critical and check out price characteristics right after IOTA peaked on December 19. Note that ever since, it’s clear that support was found at $3.3-check out the number of double bar patterns reversing from this level safe from December 22 mini-crash.
Most candlesticks closed above $3.3 and are now trading above the middle BB which in my opinion is a reliable support line and definitive for buyers given the number of time is has acted as support.
Now, here’s the thing, any close above $4.5 means buyers have broken out from consolidation which begun after December 22 and as such, we should be trading break outs in our entry charts.
I will use the Fibonacci retracement tool for entries. $4.2 is our resistance line while support is found at $3.8 and from last week’s high lows, $3.8 aligns with the 38.2% retracement level.
That is where I expect prices to reverse but even if it dips towards $3.5 on the lower side, the better for buyers.