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Little Hope for IOTA

When looking at a chart of IOTA against the US Dollar, there is very little to give bulls any hope. This coin has almost completely retraced its value returning to pre-bubble 2017 levels. It's amazing to reflect on the fact that earlier this year, IOTA was in the $2 handle and some had double digit price targets in mind. But even the most exuberant bulls have faded from the scene since IOTA has retreated to a fraction of its value at that time. The technicals are extremely foreboding. Volatility has dropped off effectively to zero, breaking down to further establish new lows. One may anticipate a breakdown or breakout with confidence.

As we can see, throughout this year, we've seen nothing but a solid downtrend. IOTA has been under its 100 day MA for some time now, finding support at the moment from the 50 day SMA. We appear to have a bear flag forming, and if it breaks down from here, we can expect to test pre bubble levels. Our Fibonacci retracement levels were anchored last year, but have provided very valuable insights that still hold true today. Currently, IOTA is at about 0.5963, clinging to support from the 0.382 Fibonacci level, which corresponds to the 50 period SMA. This should provide ample support, but another push to the downside could bring us down to the 0.236 Fibonacci level at 0.495, then we have the lower Fibonacci anchor 0.3440. Although this does appear to be the lower bound the market will expect for IOTA, we do anticipate that it will revert to this point before moving forward again.

If IOTA is able to make another bull run, it will face resistance from the 0.500 Fibonacci retracement level at 0.664. The next Fibonacci level (0.618) at 0.74 also corresponds with the 100 day SMA, so it should provide tremendous resistance. Don't expect IOTA to break through this level any time soon.

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