- IOTA fails to sustain gains above $0.31 leaving a wide gap to be explored by the bears.
- Technically, IOTA has a bearish bias in the short-term but the buyers have enough power to defend $0.28 support.
IOTA is having a negative start on Friday following the unsuccessful attempt to sustain growth above $0.31 hurdle. The hourly chart shows that the bearish action that followed the weekly high at $0.3128 found balanced at $0.28 aided by the 50 simple moving average (SMA). A shallow recovery ensued but no significant headway was made past $0.30. The bearish leg on Friday started at $0.29822 and touched a low of $0.28673 before adjusting to the current value of $0.2892.
The Bollinger Bands show that there still exist opportunities to enter new trade positions especially with the volatility sustained at high levels. The price is digging deep into the Bollinger Band one-hour middle curve. The downside is also protected by the strong 50 SMA support. The former support at $0.28 is still important and could cushion the drop in the case of a reversal.
The moving average convergence divergence (MACD) clearly shows the sellers having the upper hand but also long as it stays in the positive, it shows buyers have the strength to defend support areas.
IOT/USD one-hour chart