IOTA recently zoomed up close to the 3.0000 mark before pulling back down for a correction. Applying the Fib tool on the latest swing low and high shows that the 61.8% retracement level is close to the ascending trend line connecting the lows since last week.
Price seems to have already bounced off the 50% retracement level, though, and could be due for a move back to the recent highs. The 100 SMA is above the longer-term 200 SMA so the path of least resistance is to the upside, which means that the rally is more likely to resume than to reverse.
However, stochastic is already turning down from the overbought region to indicate a pickup in selling pressure. This signals that the correction could stay in play for a bit longer. RSI is also turning down so IOTA could follow suit.
The US dollar appears to be putting up a good fight as tax reform progress has propped it higher in the past few days. As it turns out, IOTA’s recent surge has been fueled by its teaming up with a number of big tech firms like Samsung and Microsoft.
Against bitcoin, IOTA is also enjoying strong bullish momentum but is pulling back from its latest rally. Applying the Fib tool also shows that price has bounced off the 50% level and could be ready to revisit the highs.
Similarly, IOTA is trading above an ascending trend line against bitcoin, with the 100 SMA above the 200 SMA to signal that the uptrend is likely to carry on.
Stochastic, however, is heading lower to indicate the presence of bearish pressure while RSI is pointing down as well. A larger pullback could last until the 61.8% Fib at 0.00018 or the dynamic inflection points at the moving averages.
IOTA Foundation, a German non-profit firm that oversees the virtual currency, announced that it has partnered with big names in the tech industry to create a blockchain-based marketplace that lets them sell data. “IOTA incentivize sharing of data through its zero fee transactions and by ensuring data integrity for free on the decentralized distributed ledger,” David Sonstebo, IOTA’s co-founder and CEO, said to CNBC in an email.