In the short-term, IOTA has a trading bias with the cryptocurrency trading below its 200-period moving average on the four-hour time frame.
The four-hour time frame is showing a large pattern, with the IOTA / USD pair recently staging a strong recovery from the neckline of the .
Technical indicators are still turning higher on the four-hour time frame and continue to signal further near-term gains.
Traders should note the IOTA / USD pair could fall to a new all-time trading low if the pattern on the four-hour time frame is triggered.
Relative Strength Index
The indicator on the four-hour time frame is , although it is now approaching overbought conditions.
The indicator on the four-hour time frame has turned and is issuing a strong buy signal.
IOTA surged after the announcement that Jaguar Land Rover, Britain’s largest auto manufacturer, is testing software that will allow drivers to share their vehicle data in exchange for IOTA.
IOTA / USD Medium-term price analysis
IOTA has a neutral medium-term trading outlook, with the cryptocurrency testing back towards its trend-defining 200-day moving average.
The daily time frame shows that the inverted pattern has been invalidated by the recent decline. The is also showing that the IOTA / USD pair has now moved back into range bound trading conditions.
Technical indicators on the daily time frame are attempting to recover following the recent heavy sell-off.
IOTA / USD by TradingView
Traders should note that the next direction breakout will take place once the IOTA / USD pair breaks out from the horizontal price chart on the daily time frame.
Relative Strength Index
The indicator is attempting recovery above neutral following the recent sell-off.
The indicator on the daily time frame is neutral, although pressures are building as the recovery gathers pace.
IOTA has been around since 2015 and is still trying to offer something viable to the market. The medium-term prospects for the project will depend on its ability to go beyond pilots and find partners that will start to use its platform.
The balance of risk has now shifted to the downside for the IOTA / USD in the short-term, with the buyers now needing to negate the on the four-hour time frame.
The medium outlook for the cryptocurrency is less certain until a confirmed technical breakout has occurred from the horizontal that has been in play since the start of the year.