IOTA Technical Analysis for 09/26/2017 – Bullish Pressure Mounting


IOTA recently broke out of a descending trend line against the dollar on its 4-hour time frame, indicating that a reversal is underway. Price also completed a short-term pullback to this broken resistance, confirming that buyers are regaining the upper hand.

However, the 100 SMA is still below the longer-term 200 SMA so the path of least resistance might still be to the downside, which suggests that the selloff could still resume. Price is trying to break past the 100 SMA dynamic inflection point and might be gearing up for a test of the 200 SMA next.

Stochastic is nearing overbought levels though so bulls might need some profit-taking before resuming the climb. RSI has room to head north so buyers could stay on top of their game for a bit longer and take IOTA to the next area of interest around 0.8000.

Against bitcoin, IOTA is still stuck in consolidation, forming higher lows and lower highs to create a symmetrical triangle formation. Price is approaching the peak of the pattern so a breakout is due anytime soon. The chart pattern spans 0.00010 to 0.0016 so the resulting move could last by the same height.

The 100 SMA is below the longer-term 200 SMA so the path of least resistance is to the downside, which basically suggests that a downside break is more likely to happen. Stochastic is also pointing down to reflect a potential return in buying momentum while RSI is treading sideways while the consolidation carries on.

IOTA is an open-source distributed ledger protocol launched in 2015 that goes beyond blockchain through its core invention of the blockless ‘Tangle’. This is a quantum-resistant Directed Acyclic Graph whose digital currency has a fixed money supply with zero inflationary cost.

This uniquely offers zero-fee transactions no fixed limit on how many transactions can be confirmed per second as scaling limitations have been removed with output growing in conjunction with activity. Unlike blockchain architecture, IOTA has no separation between users and validators. Instead, validation is an intrinsic property of using the ledger, thus avoiding centralization.