IOTA - Hopium, Hopium, and Hopium...
Updated
IOTA is looking slightly bullish on the daily timeframe as it is about to break out of the triangle. Not to mention, bulls did an amazing job defending the daily MACD cross right at the zero mark.
On the weekly timeframe, we can see the RSI making a potential inverse head and shoulders pattern. Similar to every inverse head and shoulders pattern, we must wait for the break of neckline resistance as confirmation.
Using a variety of synthetic currency pairs, we can compare the strength/weakness between IOTA and other cryptocurrencies. In this example, we will use synthetic pair IOTUSD/NEOUSD which simplifies into IOT/NEO.
There's a very visible bearish divergence in MACD, RSI, and Stochastic. There's a possibility that money from algo traders that are trading synthetic currency pairs may go into IOTA due to its temporary weakness against other cryptocurrencies. But keep in mind, this is simply a method to compare the strength/weakness between two highly correlated asset. USD value of IOTA does not necessarily have to go up in order for IOT/NEO to go down.
Using IOT/ETH pairing, we could see that we're approaching a long term support trendline with a double bottom starting to form. This further supports my point in IOT/NEO: IOTA should theoretically gain strength compared to other cryptocurrencies in the coming days or weeks.
Just like every single double bottom, a retest of the neckline is necessary. The neckline support must hold or else it would indicate that IOTA is still too weak.
Feel free to share your long-term bearish ideas, it's always good to know both sides.
On the weekly timeframe, we can see the RSI making a potential inverse head and shoulders pattern. Similar to every inverse head and shoulders pattern, we must wait for the break of neckline resistance as confirmation.
Using a variety of synthetic currency pairs, we can compare the strength/weakness between IOTA and other cryptocurrencies. In this example, we will use synthetic pair IOTUSD/NEOUSD which simplifies into IOT/NEO.
There's a very visible bearish divergence in MACD, RSI, and Stochastic. There's a possibility that money from algo traders that are trading synthetic currency pairs may go into IOTA due to its temporary weakness against other cryptocurrencies. But keep in mind, this is simply a method to compare the strength/weakness between two highly correlated asset. USD value of IOTA does not necessarily have to go up in order for IOT/NEO to go down.
Using IOT/ETH pairing, we could see that we're approaching a long term support trendline with a double bottom starting to form. This further supports my point in IOT/NEO: IOTA should theoretically gain strength compared to other cryptocurrencies in the coming days or weeks.
Just like every single double bottom, a retest of the neckline is necessary. The neckline support must hold or else it would indicate that IOTA is still too weak.
Feel free to share your long-term bearish ideas, it's always good to know both sides.
Note
IOTUSD weekly chart about to complete inverse head and shoulders pattern
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