IOTA price spiked higher recently by more than 20% and broke the $0.60 resistance against the US dollar. It seems like the price is now placed nicely for a push towards the $0.88 and $1.00 resistances.
- IOTA price formed a solid short-term bottom near $0.404 and jumped higher against the US Dollar.
- There was a break above a crucial bearish trend line with resistance at $0.580 on the daily chart.
- There could be more gains in the coming days towards the $0.800, $0.880 and $1.000 levels.
IOTA price analysis
The past few sessions were excellent for IOTA as its price jumped by more than 20 percent and settled above the $0.650 resistance. It seems like the price has moved into a bullish zone with a close above $0.500 and $0.600.
The daily chart of IOTA/USD indicates a massive drop in the price from the $1.225 resistance. The price tumbled below the $1.000 and $0.800 support levels. There was even a break below the $0.500 level before buyers appeared near the $0.400 level.
The price formed a low at $0.404 and settled below the 50-day simple moving average. Later, there was a fresh upward move initiated and the price traded above the $0.500 and $0.600 resistance levels.
There was also a break above the 23.6% Fibonacci retracement level of the last major decline from the $1.224 high to $0.404 low. More importantly, there was a break above a crucial bearish trend line with resistance at $0.580 on the daily chart.
It has opened the doors for more gains above the $0.700 resistance. The price is now approaching the next key resistance near $0.815 and the 50-day SMA. It also coincides with the 50% Fibonacci retracement level of the last major decline from the $1.224 high to $0.404 low.
A break above $0.815 is likely to push IOTA price towards the $0.880 resistance. The final target for the current bullish wave could be $1.000 and $1.030. If there is a downside correction, the broken supports near $0.650 and $0.550 are likely to act as strong support for buyers.
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Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis and has spent over a decade as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets. Tou can follow him on twitter at @aayushJS or reach out to him at aayush[at]coingape.com