IOTA Price Action: Doji Candle and Potential Bear Flag Forming
When Fibonacci retracements levels are drawn from December lows to early January highs, most top cryptocurrencies have managed to maintain their price above the 0.618 level.
However, IOTA is trading more bearishly with price dropping below the 0.618 level during the recent declines.
Price is currently finding support at $0.245 which was both a point of support and resistance in November and December respectively.
The current daily candle is forming a Doji candle. A Doji candle is a candle where the open and the close are around the same point. This typically reflects uncertainty from the side of traders, but conditions look more bearish for IOTA.
The consolidation currently taking place sets up a bear flag pattern which would indicate that the next significant movement will also be to the downside.
The shorter-term 4-hour timeframe shows price testing the 0.618 level several times last week.
The bearish conditions which hit over the past few days provided sufficient seller momentum for the price to significantly break below.
If the price rises back up to this level, it is likely to find resistance here.
- IOTA has been recording more bearish movements than other top cryptocurrencies as it fails to maintain above its 0.618 Fibonacci retracement level.
- A Doji candle is forming on the daily.
- Potential bear flag forming increasing the likelihood that the next significant move will be to the downside.
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IOTA Price Action: Doji Candle and Potential Bear Flag Forming was originally found on copy trading cryptocurrency | Blockchain News | Bitcoin News | blokt.com.