Home Technical Analysis IOTA Technical Analysis: (MIOTA) Starting To Plummet, Relying On Bitcoin's Performance For Support

IOTA Technical Analysis: (MIOTA) Starting To Plummet, Relying On Bitcoin's Performance For Support

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Nothing in this article is to be construed as investment advice. Neither the author nor the publication assumes any responsibility or liability for any investments, profits, or losses you may incur as a result of this information.

IOTA’s progress has temporarily stalled in the market, falling -5% against BTC despite the project releasing an array of keystone developments.

Last month we saw IOTA release the eagerly awaited Trinity wallet, continue R&D into autonomous vehicles with Volkswagen, announce plans for a new tangle-based ID card and partner with the Department of Information Technology based in Taiwan’s capital city, Taipei, to assist in the city’s ‘Airbox’ project. But perhaps the most talked about development right now is the new IOTA Qubic protocol.

Qubic will be the new quorum-based computations solution for IOTA’s tangle network,

“provid[ing] general-purpose, cloud- or fog-based, permissionless, multiprocessing capabilities on the Tangle… allow[ing] people to leverage worldwide unused computing capacity for a myriad of computational needs.”

For now, MIOTA’s price is not reflective of these new developments and is relying heavily on Bitcoin’s performance in the market right now for stability. Let’s take a look at the chart to see where this asset is going.

Looking at the IOTA/BTC chart over 4hr candles we can see that bearish momentum is gathering strongly behind IOTA as Bitcoin’s performance starts to slide into the red.

IOTA is now well below the 0.382 Fibonacci support which sits just below the 15,000 Sats mark, and is traveling almost vertically now as confidence begins to depart from the asset in the short-term.

Bullish traders have been slow in getting behind IOTA over the last month, perhaps due to the lack of media attention and marketing around these new developments.

If we looked at a number of the indicators we can see that MIOTA is likely going to continue in a downtrend until it reaches the forecasted base support zone (red area) at the 0.236 fib level/ 12,364 Sats.

  • Moving averages on the MACD indicator are well below the signal line and still falling, telling us selling momentum is gaining.
  • The asset is also well into the oversold region of the RSI, having exited bearishly from the index channel. We could expect a brief pullback towards the 0.382 support again once the price action corrects.
  • EMA lines are still evenly separated and showing no signs of converging.
  • We can see the Bollinger Bands are starting to expand, with the current price action passing through the lower band – this is also another key bearish signal.
  • Finally, we have a bearish T/K crossing with a resisting Kumo cloud projected ahead of the price action.

Once it does retrace to the base support, we could see some collection there and a pullback attempt as bullish traders attempt a reversal. Alternatively, we could see IOTA carry on its decline until it reaches the hard bottom all the way down at 8,125 Sats.

IOTA (MIOTA) Price Targets

All ROI’s and losses are set from the 0.382 fib level/ 14,971 Sats mark.

Price Target 1 (Bullish): If MIOTA can return to the 0.382 on good support, then it’s likely that the bulls will eye down the 0.5 fib level/ 17,077 Sats as their next target. A return to this psychological level will deliver a 14.07% return.

Price Target 2 (Bearish): Looking at the current indicators I think it’s far more likely that we will see MIOTA continue downward over the coming week unless BTC can make another strong surge. Once it hits the lower base support at the 0.236 fib level, it will represent a further loss of -17.41% from the 0.382 fib level.

Price Target 3 (Bearish): A retracement to the hard bottom at 8,125 Sats would deliver a catastrophic loss of -45.73%.

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