IOTA crypto fell nearly 8% on Wednesday, retreating to $0.053 after its latest recovery ran into resistance above the $0.060 price level.
The drop has placed IOTA at a crucial point. Buyers must now protect the area around the $0.052 price level before turning their attention towards reclaiming the $0.0572 price level.
IOTA loses momentum after reaching $0.062
IOTA began October strongly, climbing from around the $0.052 price level to briefly trade above the $0.060 price area. At its highest point, the token approached $0.062 before sellers took control.
That rejection carried into Wednesday’s session. IOTA started near the $0.0576 price level, but it fell as low as $0.0522. It was trading at around $0.053 at the time of this writing.
It partially rolled back last week’s recovery but didn’t wipe out the rally or throw August’s recovery into reverse.
Several levels that supported IOTA in its previous bull run continue remaining above it, but it slipped against the longer-term trend line at the $0.0534 price level, leaving little room for declines for the buyers.
There was higher trading activity in the sell-off, and so a greater take-up of shares relative to a muted fall on an ordinary quiet day.
Can buyers reclaim $0.0572?
It has to hold the $0.052 price area first. The prior low and IOTA’s trend-defining line are forming right through that level.
IOTA could go to the $0.055 price level if the price starts recovering from this point, after which the $0.0572 level could try to recapture the buyers. If it passes that level, then it can easily move above it, which would make it clear that the most recent drop has not damaged its revival plan.
This could see it reclaim the price point of $0.060 and the recent peak of $0.062.
Momentum has weakened, but the market does not look exhausted just yet. Relative Strength Index [a measure of buying and selling pressure] has fallen to 55, which is a neutral reading rather than one of extreme selling.
The downside risk would increase if IOTA falls below $0.052. In that case, $0.050 could become the next area where buyers try to stop the decline.
Failure to hold on to the $0.050 price level may take the price to the $0.047 level, where IOTA found support in September.
Final Summary
- IOTA dropped nearly 8% after its rally stalled above $0.060.
- If it holds above $0.052, it could support another attempt to reclaim $0.0572, but a fall may expose the $0.050 price level.