Crypto Update: IOTA Tests $2.5 as Bitcoin and Ethereum Drift Lower


The major coins are dominantly lower today, as the relatively weak Bitcoin continues to weigh on the segment, and the most important leader of the rally, Ethereum is in a short-term correction after last week’s strong rally.

While the uptrend is not in danger in most cases, despite the pullback, only a few coins are on short-term buy signals, as the momentum of the rally faded.  Given the mixed short-term signals, the outlook for the next days is neutral, and the majors will likely continue to diverge substantially.

BTC/USD, 4-Hour Chart Analysis

The most valuable coin pulled back after failing to break out above $10,000, and now it’s testing the $9000-$9200 support zone yet again.  As the shorter uptrend line is now broken, a trading range might develop with strong support at $8700, and below that at $8400. As the long-term picture is still not overbought, we expect the rally to continue in the coming weeks, with targets ahead at $10,500 and $11,300.

ETH/USD, 4-Hour Chart Analysis

Ethereum entered a short-term correction after becoming overbought following last week’s rally, and the coin spiked back to the previous swing high near $700 before settling down somewhat around the $735 support. The overbought short-term momentum readings are now cleared, and the leader of the rally could be in for another leg higher, even as the long-term picture is also slightly stretched. Primary resistance is ahead at $780, with further zones near $845, $900, and $1000.

IOTA on the Move after Correction


IOT/USD, 4-Hour Chart Analysis

Although most of the altcoins are following BTVC and ETH lower, the early leaders of the recent rally, IOTA and EOS are showing stability after their respective pullbacks. IOTA attempted a break-out today, spiking briefly above the $2.50 level again in the mixed environment after finding support near the crucial $2.2 level. While the coin failed to move above the previous swing high near the $2.60 resistance, it remains relatively strong and on a short-term buy signal even as the long-term picture is clearly overbought.

Litecoin remains the only other major on a short-term buy signal, despite the pullback, as the short-term uptrend is intact, although the coin failed to break out above the key $170-4180 resistance zone. The rest of the market is drifting lower without strong momentum, but the key resistance levels are still holding, and odds still favor the continuation of the recovery.

Featured image from Shutterstock

Disclaimer:  The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.

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