The IOTA price has retraced to a significant support area. If the support holds, IOTA will likely initiate an upward move.
The IOTA price has been decreasing since October 25. During this time, it has lost slightly more than 20 percent of its value. But, recent movement suggests that the price might be ready to begin a reversal. Options trader @hackermanace outlined this support area in a tweet, suggesting that the price is ready to move upwards.
$iota is time to pay up.
Watching support strength . One consolidation block below if i wanted to grab lower, the lowest zone id personally would play. pic.twitter.com/h8ICgSsCrK
— Ace (@HackermanAce) December 9, 2019
In case the IOTA price wants to move upward, he believes this is the final level that would allow it to do so.
Let’s take a closer look at the price movement and see if IOTA is ready for an upward move.
Possible Support for IOTA
The IOTA price began an upward move in September 2019 and reached a high of 3500 satoshis the next month. After failing to break through, it has retraced all the way to the 0.618 Fib level at 2700 satoshis.
The price has reacted to this area several times, both as resistance and support. After breaking out, the price flipped it as support in the September upward movement.
The IOTA price fell to the area again in October, before creating a very long lower wick and moving upward. It is currently back inside the support area.
The short term movement shows that the IOTA price has been building strength inside the support area in the form of bullish divergence in the RSI.
This solidifies the significance of the support area and indicates that we could see a price movement towards the range high at 3100 satoshis.
Besides the short-term chart, higher time-frames also provide a bullish outlook. IOTA reached a new all-time low of 2099 satoshis in August 2019. This was combined with a strong bullish divergence in the weekly RSI, which was in the oversold region.
The weekly RSI has never generated bullish divergence prior, nor has it fallen to the oversold region. This unprecedented occurrence suggests that IOTA is likely to begin a new market cycle.
To conclude, the IOTA price has fallen to a significant support area in the short-term and has indicated that it wants to move upward. Higher time-frames also suggest that IOTA has reached a bottom and will soon begin a new market cycle.
Images courtesy of TradingView, Twitter.
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Source: Be In Crypto