MIOTA had climbed to a 52-week high of $1.86 after breaking out of an ascending parallel channel.
The price of IOTA against the US dollar has declined from highs of $1.86 after running into increased sell-off pressure.
The cryptocurrency was trading near $1.70 at the time of writing, just below the critical support level at $1.72. The immediate price outlook for MIOTA suggests that bears are likely to inflict more pain unless sentiment in the broader cryptocurrency market improves.
As IOTA struggles to stay above $1.70, major coins Bitcoin (BTC) and Ethereum (ETH) are also trading lower. BTC/USD is hovering near $58k, while ETH/USD has dropped to $2,077.
IOTA price outlook
The 4-hour candles show that MIOTA has traded lower amid a push by sellers to break towards the important 100 SMA support. This comes after IOTA/USD rallied out of an ascending channel to reach the 52-week high of $1.86.
The rejection has pushed prices back within the channel, with the pattern’s middle line offering an initial anchor zone.
Technical indicators point to a potential downturn in prices, with the MACD above the signal line but showing decreasing bullish momentum. The RSI also remains above the equilibrium level but has a negative divergence outlook.
If the selling extends below $1.64, a breakdown to the lower boundary of the old channel could see bulls rely on the critical 100 SMA support at $1.53.
Any more losses could drag IOTA towards $1.47, and then further to $1.38.
On the upside, IOTA could benefit from a flip towards the $1.75 resistance level. As the 4-hour chart shows, bulls have tried to buy the dips and success could see them retest the $1.80 and $1.86 supply zones. If they succeed in breaking to $1.90, the next target would be $2.00.
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