Currently, IOTA stands at the 11th spot by market cap valuation. Many of the cryptocurrencies in the top 10 list have risen from their bottoms. However, IOTA is still struggling.
The reasons for the struggle are plenty. One is the ugly interaction late last month between the development team and security researchers who found a critical weakness in the project. This is actually undermining the confidence of the investors to invest in the cryptocurrency. According to most of the cryptocurrency experts, the founder and the development team could have handled the interaction in a much better way. The only solace is that the price of the cryptocurrency has just stagnated. It has not fallen by a significant amount.
IOTA Weekly analysis:
IOTA has fallen since the beginning of this year. It went from a high of $5.69 in December all the way to $ 1.20 before rebounding to $1.53 yesterday. This was after a 1500% return which it gave in the 5 weeks of December. Currently, it is the 4th week of consolidation after hitting a low of $ 1.20.
If you look at the previous consolidation of the cryptocurrency, it was around 5 weeks. This brings us to the very important question whether it can also rise once again.
If you look at the analysis from the daily charts, you will realize that it is around the 78.6% retracement levels from its huge fall. Also, it is forming a symmetrical triangle which indicates a breakout pretty soon enough. Also, it is above the 20 days EMA. In case, the breakout is successful, the next target is around $ 2.9. The resistance is placed at $ 3.
What is the best course of action?
Given the current data, it is a good idea to wait for the breakout. Instead of tracking the range, once it crosses above$ 2.23, there is a buying opportunity. On the upside, if it is able to break the $3 mark, it can rise all the way to $ 4 as well. This is the reason why you have to wait it out till it breaks through the range. Once it is able to break the range conclusively by moving above $ 2.23 and staying there for a significant period of time, it might be worth investing. Till then, no matter how much it rises or falls, it is a good idea to stay away from it as it is not yet in the buying zones.