The IOTA value extended its current bullish momentum on Tuesday owing to its recently announced partnership with Fujitsu.
The Japanese tech giant picked IOTA from the basket of blockchain projects and named it as the new protocol standard for its IT equipment manufacturing service. The IOTA-integration would allow Fujitsu to handle data storing in production and to engage with the automotive and manufacturing industry. One other bullish factor that got overshadowed by the Fujitsu-announcement -and which could also have influenced the impressive IOTA rally – is Trinity Desktop Beta Wallet.
The IOTA Foundation on Saturday launched Trinity Desktop Beta Wallet in an attempt to make its code public – after months of development. The IOTA community expected to react positively to the launch, for the new wallet version was promising to solve a massive number of usability issues. Furthermore, the beta wallet is also available for desktop and is considered secure based on the developers’ and users’ feedback.
As a result, what the market experienced on Sunday was the beginning of a community-led rally, which continues to build stronger at the time of this writing.
The IOT/USD pair on BitFinex is now valued at 0.6922-fiat, almost 50 percent higher than the low recorded on Saturday. Strong fundamentals appear to be the only reason behind the astonishing rally, and technical factors are weighing in precautions by hinting possible bearish corrections in near-term. We sketched a Fibonacci retracement chart on a swing from July’s high at 1.2581-fiat to recent bottom at 0.4025-fiat. As a result, we were able to locate a potential resistance level coinciding with the 38.2 percent level at 0.7274-fiat. Have a look:
An extended break from the resistance could have medium-term traders target the descending trendline as the next upside target. The strong fundamentals can dry off as the day traders begin to sell their positions; thus, inflicting a downside correction phase towards 0.4025-fiat. However, a short position towards the said support would be too far to achieve.
Which brings to the targets that are within reach of a weak pullback. For instance, the 100H MA in blue could be a decent level to reignite buying sentiment. A run towards resistance, followed by a breakout, could form a bull pennant, confirming a medium-term bullish bias in an otherwise long-term bearish market.
Featured image from Shutterstock. Charts from TradingView.
Last modified: May 20, 2020 6:04 PM UTC