Iota could follow Bitcoin
When it comes to alternative cryptocurrencies, one of the more interesting ones is Iota. The Internet of Things Access token is one that could have a lot of built-in demand, as more things become connected to the Internet in your home. Because of this, it is something that longer-term investors do tend to be very interested in, because of the long-term utility.
Recently, we have seen other cryptocurrencies break to the upside. The most notable one of course is Bitcoin, which has absolutely exploded. As a general rule, Bitcoin does have a bit of a knock on effect with the rest of the crypto currencies around the world, and therefore it is to be paid attention to it all times. As Bitcoin has shown such strength, people begin to look for value and other coins.
Iota has been in a trading range for quite some time. If you look at the Bitcoin charts over the last year or so, you can identify that there was a definite trading range as we try to build up a base to go higher. We have since broken out of that rectangle, and it now looks like the rest of the crypto currency space is trying to do follow suit. Iota should be no different than the others.
We have been trading between $0.25 and $0.40 for months. We are now approaching the $0.36 level as I write this article, and the $0.40 level is just above and waiting to be tested. The 50 day EMA is flat as one would expect, but it is starting to curl to the upside. I would also point out that the volume on Monday was a bit higher than the previous couple of weeks, so that shows that there is a little bit of buying pressure behind that stronger candlestick. The fact that we have continued to rally also helps the bullish case as well.
The initial potential target will be $0.50, as it is a round figure. Beyond that, about that time we should be running into the 200 day EMA which will attract a certain amount of technical trading. If that’s going to be the case, we could get a sudden burst. As soon as we break out to the upside we will probably shoot straight to that level. With that in mind, if you are a longer-term trader you are buying Iota down here anyway.
To the downside, the $0.25 level needs to hold. If it does not then Iota could break down rather significantly. Ultimately, this is a market that does have a lot of support underneath that though, and I would also point out the green candle stick with the massive amount of volume from a couple of weeks ago. That was your initial shot across the bow as it were.
All things being equal, it’s very likely that we are going to break out to the upside. If and when we get above the 200 day EMA, this could be a confirmation of the trend change and Iota should move right along with Bitcoin in the rest of the crypto currency markets.
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