Sun. Aug 7th, 2022

The price of IOTA is currently below $0.20 level which was very strong support and this is certainly not a good sign. The first strong sign of recovery could be if the price jumps above $0.5 but everything indicates that this will not happen soon. Some analysts believe that the end of capitulation is right around the corner and they hope that the price could reach historic levels. IOTA is a cryptocurrency designed for the Internet of Things (IoT). There is no concept of block or blockchain and thus no concept of mining. It uses a different data structure, tangle, which is based on a directed acyclic graph. With this concept, each company can explore new business models by making every technological resource a potential service to be traded on an open market with no fees. According to analysts, IOTA has a very good risk/reward ratio in the market right now which means you stand to gain a lot more for taking a comparatively smaller risk. The price of IOTA has been trading in a downtrend for a while and according to technical analysis, the downtrend is still very strong. In the chart below (a period from January 2019), I have marked major resistance and support levels which can help us to understand where the price could move. The current resistance levels are $0.2, $0.3 and $0.5, $0.15 and $0.10 represent the current support levels.

The price of IOTA has weakened from $0.30 below $0.15 in less than 90 days and the price could fall even more in the upcoming weeks. Although the price can weaken even more the current price represents a good entry-level for the long term investors. It is very hard to predict where the price of IOTA will go, but if the price jumps above $0.2 resistance level it would probably reach $0.3 in the short time period. If the price jumps above $0.5 we have an open way to $0.6. If the price drops below $0.15 strong support again that would be a strong “SELL” signal and the open way to $0.10.

Recommendation: IOTA is a cryptocurrency designed for the Internet of Things (IoT) and it is important to mention that IOTA has lots of advantages over the Bitcoin. If you’re looking to invest in IOTA, you would be able to make good returns according to the price predictions in the next several years. According to analysts, IOTA has very big potential in real-world applications and IOTA was planned from the beginning to interact with everything. The future actually looks bright for IOTA but investors should have in mind that IOTA isn’t the only privacy coin competing for market share and some other cryptocurrencies could potentially limit the adoption of IOTA. I would recommend everybody to be careful and to invest a small sum of money in IOTA, the best time period for me is between 3-5 years, hold and wait. According to the rules of technical analysis, the “bearish” trend of this cryptocurrency is still very strong. If the price jumps above $0.2 that could be a very good opportunity for the short term traders, short-term traders can put the stop loss at $0.18 and take profit at $0.3 or above. If the price drops below $0.15 support that would be a “SELL” signal and the open way to $0.10.

 

https://www.tradingview.com/chart?symbol=BITFINEX%3AIOTUSD

https://www.investopedia.com/terms/i/iota.asp

https://www.forbes.com/sites/geraldfenech/2018/11/20/iota-fulfilling-the-promise-of-blockchain/