- IOTA waterfall drop butchers key support to test lows close to $0.25.
- Falling wedge pattern ignites acute declines leading to double-digit losses.
The entire market is bleeding profusely, however, IOTA is among the biggest daily losers on Monday, January 28, 2019. The $719 million crypto has tumbled more than 10% in a matter of hours following the bearish wave that struck the market at the start of the week. The market has lost at least $7 billion in the fresh declines while IOTA alone has deflated more than 10% according to the live rates provided by FXStreet.
At press time, IOTA is trading at $0.25. In the past week, IOTA has been correcting lower. However, the declines were not as huge as the one witnessed during the Asian trading hours today. The crypto broke down further after failing to find support at the falling wedge pattern as observed on the chart below. He declines were unstoppable at the 23.6% Fibonacci retracement level taken between the last high at $0.3297 and a low of $0.2525.
There has been a slight bounce at the swing low ($0.2525), however, the bulls have scattered and IOTA is heading south again after failing to sustain growth above $0.26. Moreover, the 50-day Simple Moving Average (SMA) has made a double-cross move below the longer term 100-SMA to show that selling activity is still high. In addition to that, the gap between the moving averages is widening hence emphasizing the influence the bears have on the price. If IOTA fails to find support at $0.2525, the asset is likely to test $0.25 and explore even lower levels.
IOT/USD 1 chart
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