IOTA’s been moving through a bit of a tight spot lately, and it’s really testing us traders. Right now, IOTA price is hovering around $0.193, just below a key resistance at $0.217. This area’s been a significant level to watch, especially since it lines up with the 0.786 Fibonacci retracement. If IOTA can push through this barrier, it could signal a much-needed breakout. But if it fails to break above? Well, we might be in for more downside.
The chart above is a clear show of the descending wedges. Descending wedges are one of those chart patterns that either make you really excited or leave you holding your breath, waiting for the next move. IOTA in this case has been working its way through a descending wedge pattern since the massive rally to $0.63 back in December 2024. And trust me, we’ve all been watching this wedge closely, hoping for a breakout.
But the thing is, it’s hard to predict whether we’re headed for a bullish reversal or if IOTA is just taking a breather before another dip. I mean, sure, the support levels around $0.164 to $0.105 have held up pretty well, but there’s always that nagging uncertainty. I’ve seen it before — the market can do a complete 180 when you least expect it.
From what I can tell, IOTA’s price action looks like it’s in a five-wave pattern (A-B-C-D-E) — nothing too crazy, just a typical corrective structure. We could be wrapping up this wave E, but who knows? There might be one final push lower before things bottom out. It’s like waiting for the last chapter of a book to decide if it ends with a twist or not.
And then there’s the RSI — it’s been floating around the 50 mark, showing us that the bulls aren’t exactly in control. It’s more like we’re in the middle of a tug-of-war between buyers and sellers. Nothing too decisive just yet. That said, the RSI on the hourly chart is getting pretty close to oversold territory, which might mean the bulls are gearing up for a move.
So, what are the two possibilities here?
- Bearish Scenario:
If resistance holds at $0.217 and the price starts turning south, we might see a deeper correction. I’m talking about a possible decline toward the $0.160 and $0.120 levels. Those are Fibonacci extensions (1.0 and 1.618), and they sit right in the long-term support zone. It’s like the market wants to take one last dip before finding a solid bottom. We’ve all seen those late-night price drops — but sometimes, they’re just the setup for the next big move. - Bullish Scenario:
If IOTA pushes through the $0.217 level and confirms a breakout, then things could get interesting. It would invalidate the bearish scenario and likely lead to a rally toward the $0.305 and $0.367 levels. Personally, I’d keep an eye on that $0.240 mark as the key level. If IOTA can close above it with strong volume, that’s a sign we might be in for a trend shift.
The truth is, the next few days could really determine where IOTA goes next. Is it going to rally, or are we in for another round of consolidation and decline? I’m definitely keeping an eye on volume, and I’m sure you are too. Volume’s a big deal here — it’ll tell us if the breakout is real or just another fake-out.
Key Levels to Watch
- Resistance: $0.217 (Fib retracement), $0.240 (wedge breakout confirmation)
- Support: $0.164 (current support), $0.160 and $0.120 (bearish targets)
- Critical Zone: $0.105 (long-term low)
- Breakout Target: $0.305 and $0.367 (if bullish)
So, here we are. Watching and waiting. IOTA’s at a crossroads, and the next few sessions will be critical. Let’s see if it breaks out, or if we’re in for one last ride to the downside.
Read: Why IOTA’s Tangle May Be the Answer to Blockchain’s Flaws
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