A significant price rebound confirms the trend reversal of the price of IOTA, which suggests further profits in the next few days. The price remains in a broadly sideways range, for which the low volatility might drive it to the upside.
The cryptocurrency IOTA recently resumed the bullish trend with much force, jumping by 28.32% in the last seven days. That situation is generating an excellent technical scenario for the short term.
IOTA is currently trading at around USD 1.3 and has accumulated a 0.2% profit in the last 24 hours. Its daily trading volume is above USD 66.5 million, and its market capitalization is about USD 3.6 billion. It occupies 51st place in the cryptocurrency ranking, according to CoinGecko.
The announcement of the new function of that network was the catalyst behind the recent rally of IOTA. They said that it would allow the staking of the token to obtain rewards and secure its blockchain.
Technical Analysis of the Short-Term Upward Trend of IOTA
The Price of IOTA recently experienced a strong price rally, which allowed it to break through an inverted Shoulder Head Shoulder pattern. That confirms the trend reversal signal that this chart formation throws out.
The short-term trend for IOTA is bullish, for which there should be higher profits in the next few days.
The price has undergone a minor correction, which might extend a little further. However, the dominant bullish force in the market of IOTA should halt sales soon and give way to new momentum. The closest target of the price is to reach USD 1.51.
The Price Must Still Break Through a Large Symmetrical Rectangle
The weekly IOTA/USDT chart reveals that the short-term upward trend is currently little relevant. The price is still in a broad sideways range, in the shape of a symmetrical triangle.
The price of that cryptocurrency has remained on this side after a significant bullish rebound earlier in the year. That suggests that the low volatility might be a break before continuing to the upside.
The value of IOTA may resume the medium/long-term bullish trend. However, it must first break through the resistance at USD 1.47 to confirm that this will happen.
If it loses the support at USD 1.00, there could be higher selling next. However, that is not very likely to happen at the moment.
The Position of IOTA in the Ranking of Cryptocurrencies
IOTA is just below Monero (XMR), which occupies 50th place in the cryptocurrency ranking. While XRP has grown by 14.0%, XMR has accumulated a 10.7% profit this week.
Concerning XMR, it is currently trading at around USD 205,76 and has achieved a 0.2% gain in the last 24 hours. Its daily trading volume is above USD 169.8 million, and its market capitalization is about USD 3.7 billion, according to CoinGecko.
Although it is difficult to predict the price of IOTA in the short term, the above technical analysis indicates that there might continue rising. It is only a matter of time before it reaches significantly high levels.
By Alexander Salazar
