IOTA Jumps On The Upswing Train
IOTA is the third generation cryptocurrency created for Internet of Things (IoT) purposes. The coin is unique because IOTA isn’t built around blockchain, but different decentralized technology – the Tangle.
We’ve already made some analysis. Last time, we analyzed EOS, one of the best performing cryptocurrencies. Today, we want to look at what IOTA’s chart says.
Different technology, similar trends
Most of the popular cryptocurrencies are correlated with the variability of Bitcoin. The noteworthy movement has shown up recently on IOTAUSD, and if it continues, we can expect the significant change in the supply and demand.
The last week’s drops were clear, but the abreaction also becomes significant. However, the supply may not be able to maintain the exchange rate for the upward trend line if we have in mind the resistance from February. IOTAUSD is currently located in the place where the fight between buyers and sellers may happen. 0.3230 is this year’s multiple resistance, which was exceeded only once, at the beginning of April. However, the supply quickly set in and the exchange rate of IOTAUSD reached with its shadow the daily candlestick until the support from February at 0.2450.
The next step
We can presume that the current increases at other cryptocurrencies may also activate the demand side in this case. Especially because the exchange rate strongly rose from the downward trend, on May 11 this year. The limit set by level 0.3230 seems to be already reached, which can be related to the high volatility at other cryptocurrencies.
The current increase may be a signal for further activation of buyers, which will result in the resistance of 0.3600, and consequently 0.4000. The possible option is also inactivity on the part of buyers. In this case, we could witness the downward wave towards the level 0.2800 set by the crossed trend lines, and also another test of the level 0.2450.
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