Hello, today I want to check a cryptocurrency that suffered a big hit on february /march downtrend, IOTA is a relatively new subject on crypto market and is for sure an interesting project as internet of things is an increasing market with many use cases.
IOTA (Ticker: MIOTA) suffered a big hit on last downtrend and pass from a maximum of 0,35 Dollar to a minimum of 0,0895 Dollar (with a temporary crash to 0,0534 Dollar) the drawdown of this movement was a astonishing -74,4% with a lost of three quarter of the capitalization, what a run to the hell!! ☹.
Utilizing the Fibonacci retracement we can see on the next chart that after the actual up trend we regain just less than 38,2% of what we lost during last few month, in my personal experience I know that the important level where the retracement find some difficult to sustain itself is at 61,8% but in this case we are much lower than this important target.
The actual ascending trend seems to be a valid one even if IOTA suffered a pullback at 0.382 (32,8% of the retracement), this make us hope in a continuation of the movement after a consolidation of the gain archived so far.
As you can notice we not take as valid price level the 0,0534 Dollar as it was a movement that concerned just a brief period and was never ever seen. (take a look at the last chart below)
The trend started march 12 (1st chart of this post) at 0,0895 Dollar is on track to archive good results but we never know what could happen if volatility push down IOTA value than we may take care of some support level….. the first is at 0,16 Dollar and is close to the Fibonacci level of 23,6% retracement, if this price will be violated we find another support at 0,144 with a third at 0,12 Dollar.
In the happy chance that IOTA keep the ride on and try to arrive at the final battle at 61,8% of Fibonacci (around 0,26 Dollar) we are plenty of resistance, at 0,2 Dollar we find the first with the next one at around 0,237 dollar, the breakout of those resistance would drive us at 0,258 Dollar (the fatidic big battlefield between bulls and bears…. That is what we like 😉 ).
We may notice that the chart show us a highway for the breakout of the last resistance till 0,35 Dollar that is the maximum of the medium term, is very important to understand that nothing is 100% sure and neither this last claim, this mean that if a global downtrend start between the last resistance and the “big target” we may see a came back of the bears prevalence.
As always thanks for reading and hope that you enjoy this post.