- IOTA has broken out of a falling wedge pattern after a 60% decline, surging 10% and showing bullish potential with key indicators like the CMF and AO signaling increased buying pressure.
- If the token sustains momentum above the 20 EMA, it could rally toward $0.30, with possible targets at $0.37 and $0.43, but a failure could see it drop below $0.15.
After enduring a steep 60% decline over the past few months, IOTA has finally shown signs of life, surging 10% in the last 24 hours. This move comes after breaking out of a falling wedge pattern, a development that could signal the beginning of a bullish phase for the altcoin. But will this momentum sustain, or is this just a temporary bounce?
Breaking Out of the Falling Wedge
Between December 2024 and February 2025, IOTA’s price steadily declined from $0.50 to $0.20, weighed down by persistent selling pressure. However, recent price action suggests a shift in sentiment. On March 2, IOTA broke free from the falling wedge pattern, reaching $0.26 before facing a brief retracement. Historically, such breakouts indicate the potential for extended uptrends, provided market conditions remain favorable.
Key Indicators Flashing Bullish Signals
Two critical technical indicators are supporting the case for further price appreciation:
- Chaikin Money Flow (CMF): This indicator, which measures buying and selling pressure, has risen above the zero line. This suggests that investors are accumulating IOTA, reducing selling pressure and paving the way for higher prices.
- Awesome Oscillator (AO): A shift from red to green histogram bars on the AO signals a change in momentum. This suggests that IOTA is transitioning from bearish to bullish territory, reinforcing the potential for further gains.
IOTA Targets $0.30 and Beyond
IOTA’s price is currently hovering around its 20-period Exponential Moving Average (EMA), a key indicator in determining short-term trends. If the token successfully breaches this resistance level, it could trigger a rally toward the $0.30 mark. Moreover, a surge in the Balance of Power (BoP) indicator suggests that bulls are gaining control over price movements.
If bullish momentum continues, IOTA may not stop at $0.30. The next price targets are $0.37 and, in a highly optimistic scenario, $0.43, where the 0.382 Fibonacci retracement level stands.
While the breakout is promising, a failure to sustain above the 20 EMA could see IOTA retrace below $0.15. The broader market sentiment and trading volume will be crucial in determining whether this rally holds or fizzles out.
IOTA’s recent breakout offers an optimistic outlook for investors and traders. With key indicators flashing bullish signals and the potential for further gains, the altcoin is at a crucial turning point. However, traders should watch for confirmation above the 20 EMA before making strong bullish bets. If market conditions align, IOTA could be on its way to setting new highs in the coming weeks.