IOTA price rocketed above the $5.00 level recently against the US Dollar. IOTA/USD is correcting lower but it remains supported above $3.00.
Key Talking Points
IOTA price enjoyed heavy gains recently above the $2.00 handle and traded to a new all-time high at $5.60 (data feed by Bitfinex) against the US Dollar.
There is a key bullish trend line forming with support at $3.00 on the 2-hours chart of IOTA/USD.
The pair remains supported on the downside near $3.00 and $2.80 in the near term.
IOTA Price Chart Analysis
In the last analysis, we discussed a major uptrend in IOTA price above the $1.00 handle against the US Dollar. The IOTA/USD pair was aligned to move above the $2.00 resistance. The price did move higher and was able to double gains by moving above the $5.00 handle.
A new all-time high at $5.60 was formed from there the price started a short-term correction. It has moved below the 50% Fib retracement level of the last wave from the $2.15 low to $5.60 high.
However, there are many support levels on the downside such as $3.00, $2.80 and $2.50. There is also a key bullish trend line forming with support at $3.00 on the 2-hours chart of IOTA/USD.
At the moment, the pair is trading near the 61.8% Fib retracement level of the last wave from the $2.15 low to $5.60 high, which is acting as a support. It seems like the pair is currently approaching a major support area above $3.00.
As long as the pair stays above the trend line support at $3.00, it remains in an uptrend towards $5.00. Should there be a close below $3.00, the price might test $2.00 or the 100 simple moving average (2-hour).
On the upside, an initial resistance is around the $4.00 level. Above the mentioned $4.00 level, the price could accelerate gains towards the $5.00 level.
The overall market sentiment is still bullish, but the price has to stay above $3.00 to avoid any further declines.