The IOTA price today jumped 21 percent against the US Dollar owing to a strong push from Japan.
Fujitsu, a Tokyo-based multinational IT equipment company, released a paper explaining the use of IOTA-focused blockchain as an immutable data storage medium for their audit trail process. The IT giant expects to integrate IOTA into its manufacturing and supply chain verticals to enable better transparency, data trust, and data security.
An excerpt from the company paper read:
“Fujitsu is well-equipped to help roll out IOTA as the new protocol standard as we are experts in both IT services and the manufacturing of IT products.”
The Fujitsu announcement eventually catalyzed the bullish sentiment in a market that was trending sideways from the medium-term, and downward from the long-term perspective. The IOT/USD jumped on strong fundamentals but, at the same time, confirmed a small downside correction.
At press time, the IOT/USD pair is valued at 0.6115. That is 18.83 percent higher than our intraday low at 0.5168-fiat. The IOTA market cap has also jumped to $1.8. Billion, according to the data available on CoinMarketCap.
An ascending trendline is currently supporting the IOT/USD medium-term uptrend. The pair meanwhile has improved its position concerning its 100H and 200H moving average curves. It is now way above them, giving us the sense of an improved buying sentiment in the market. The RSI and Stochastic indicators, at the same time, have been attempting weak downside recoveries from the latest upside rally.
It is likely we see an extended downside correction from here, establishing support at 38.2% Fibonacci retracement of the swing from 0.5168-low to 0.6291-high. From there, we could see price either 1) attempting a bounce back towards 0.6291, the high or 2) extending its downtrend towards levels defined at 50% and 61.8% Fibonacci retracements. If the first case comes to be true, we can expect a run towards 0.6457-fiat, the provably strong resistance from early August.
As far as the second case is concerned, it has more to do with the hype around the Fujitsu-announcement. People are likely to hold IOTA now for its significant development updates, but day traders can attempt to manipulate markets to squeeze out small daily profits. Should it happen, 5862-fiat can provide decent support and a run towards the intraday high at 0.6291-fiat. If it is broken, we can expect the price to complete a near-term Head and Shoulder Pattern, with its neckline coinciding with 0.55970-fiat.
(As we are not actively day trading IOT/USD, it would be unwise to provide potential exit/entry positions. Readers’ discretion is advised.)
Featured image from Shutterstock. Charts from TradingView.
Last modified: June 11, 2020 10:05 AM UTC