IOTA Breaks out of Falling Wedge After 60% Decline, Paving the Way for Higher Highs

Key Takeaways

• IOTA’s price increased by 10% in the last 24 hours amid a rise above the falling wedge pattern.
• The CMF has risen above the signal line, indicating increasing buying pressure around the token.
• IOTA is flirting near the 20 EMA, with indicators showing that it could breach the overhead resistance.
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Between the first week of December 2024 and the last day of February, IOTA’s price plummeted by 60%, falling from $0.50 to $0.20. However, in the last 24 hours, the token’s value has risen by 10%.

The price increase suggests that selling pressure may be easing, giving buyers a chance to regain control.

However, trading volume and market sentiment must remain bullish for the rally to hold. Will IOTA capitalize on this breakout?

IOTA Looks to Sustain Uptrend

According to the daily chart, IOTA’s price steadily declined for most of last month, with lower highs and lower lows. This price action has formed a falling wedge pattern.

At press time, IOTA broke out of the wedge pattern as it moved from $0.22 to $0.26 on Sunday, March 2. While a bearish engulfing candle retraced that move, the token seems ready to make a similar move again.

Historically, a falling wedge breakout leads to sustained uptrends, and if market conditions align, IOTA’s price could be on track to set higher highs.

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Two indicators support the potential for a higher value. The first is the Chaikin Money Flow (CMF) while the other is the Awesome Oscillator (AO),

The CMF uses money flow to measure the accumulation and distribution level around a cryptocurrency. When it rises, it indicates buying pressure and indicates that the price can increase.

Conversely, a decline in the CMF signals selling pressure. However, the CMF has now crossed the zero line, indicating that market participants are buying into the IOTA dip.

Furthermore, the Awesome Oscillator (AO) has flashed green histogram bars. This indicates the momentum around the altcoin is switching from bearish to bullish. If sustained, IOTA’s price could be much higher than $0.22.

IOTA Price Analysis: $0.30 Coming?

Looking at the daily chart again, CCN noticed that IOTA’s price is attempting to rise above the 20-period Exponential Moving Average (EMA). The 20 EMA is a key indicator that plays an instrumental role in a cryptocurrency’s price movement.

When the price is below it, it means the trend is bearish, and correction can extend. However, in this situation, IOTA is flirting around it and showing signs of breaking much above it.

If this happens, then IOTA’s value could head toward $0.30. Additionally, the Balance of Power (BoP) reading has significantly increased, indicating that bulls have the upper hand.

Should this trend continue, IOTA’s price might climb to $0.37. In a highly bullish scenario, the altcoin’s value can climb to the 0.382 support floor at $0.43.

However, if the token drops below the 20 EMA and bears dictate the direction, IOTA might drop below $0.15.