While IOTA is a traded cryptocurrency, it is not a blockchain. Since there is no blockchain, it cannot be mined, and hence it has no miner rewards or transaction fees. IOTA is a system that validates transactions at zero fees. We are witnessing a strong buying volume and rally since the beginning of September 2021. It seems this month is lucky for IOTA investors as it marks close to 20% of gains in just two days. The driving factor behind IOTA is not visible, but it has helped in a breakout of its previous consolidation levels.
IOTA currently trades at 44th position among the largest market capitalization cryptocurrencies. This price action is extremely bullish but will meet the thought resistance of the 200 Day moving average. We can expect IOTA to consolidate around 200 DMA for some time before a breakout, which will be a great point to acquire more coins. It would re-affirm the positive stance and enable us to enter a consolidation level with an opportunity to add more.
Entering at the current rally could offer more gains, but it would carry the risk of severe profit booking from the 200 DMA line.
IOTA Price Analysis
From a technical perspective, IOTA is following a breakout pattern with high volumes. Continuation of current volumes trend can scale IOTA towards a much higher value.
On daily charts, the price action of IOTA cryptocurrency is indicating strength and confidence. Rising RSI levels from neutral towards overbought zones indicate the buying sentiment on this crypto asset. IOTA has a strong support zone from $0.85 to $0.94, and there have been frequent bounce backs from these levels. Breaking from the support zones above the $0.95 indicated the first signals of market reversal. Current price action shows the possibility of green candles above 10% to help it surpass the 200 DMA resistance.
IOTA can further consolidate between the 200 DMA and upper resistance of $1.17 and $1.30 and still seem optimistic. Based on the IOTA forecast, for re-entry, one can wait for IOTA to fall towards the lower end of the consolidation zone at $0.90 – $0.95 levels. IOTA is more likely to move above 200 DMA, consolidate for a few days, and head towards $1.50 levels. IOTA is slowly lingering towards its all-time high of $2.75, and we can witness it hitting a new high. The only concern would be a drop in trading volumes, and any holder must keep a keen eye on daily volumes.
On hourly charts, IOTA price has broken the resistance of its small consolidation zone, where it was stuck for the last one week. After a strong buying candle, it moved slowly, making a higher consolidation range with back-to-back attempts at making a new high. Finally, the sellers gave hope and what followed in four hours of consistent buying with substantially high volumes.
RSI on hourly charts trades in overbought zones, indicating immense positivity, while MACD maintains a steady gap between the two moving averages indicating the momentum to continue for some time.
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