Hello traders! I was watching multiple cryptocurrencies to find those who manage to outperform the Bitcoin in the recent rally. One of those coins is IOTA, which today went up quite sharply.
During 2-6 August, IOTA/BTC has formed a double bottom at 0.00002572 after which the price started to rise and broke above the 200 Exponential Moving Average. A correction down followed and IOTA rejected the EMA and then produced a new higher high confirming the validity of an uptrend.
In regards to the upside target, the key resistance is seen at 0.00002904 which is confirmed by two Fibonacci retracement levels. First Fibs was applied to the downtrend trendline breakout point at 0.00002702, where a 50% retracement level was placed. The idea is that the distance prior to the trendline breakout equals the distance after the breakout, making the 0% Fibonacci retracement level a final upside target. In our case, the nearest resistance is seen at 23.6% Fibs, which cleanly corresponds to the 78.6% retracement level of the Fibs applied to the last wave up, where 0.00003009 high has been produced.
It is possible that IOTA/BTC will break above the first resistance in which case the final upside target at 0.00003084 can be expected to be tested in the coming days. However, rejection of the 0.00002904 resistance can result in a very strong corrective move to the downside, pushing the price as low as 0.00002483, where 78.6% Fibs is located.
Bias: Strongly bullish while above 0.00002645
Potential Support Zone: 0.000026 – 0.000027
Potential Targets: 0.00002904, 0.00003084
Have a profitable trading!