IOTA has fallen more than 10% in the past 24 hours and is struggling to hold above the $2 level amid a large sell-off
The crypto market has turned red again, with prices of Bitcoin, Ether, Binance Coin and nearly all major cryptocurrencies declining at the moment. IOTA has been affected by this market dip as well, dropping over 10% in the last 24 hours.
Despite the heavy sell-off, IOTA bulls have managed to defend the $2 support level in recent hours. Holding the price above that level could allow the token to rebound and recover some of its weekend losses.
If bulls regain stronger control of the market, IOTA could resume its upward move quickly.
[SCAN RESULTS – 15m – #USDT PAIR]
Binance top 5 bullish strength
1: $YFII
2: $CKB
3: $COMP
4: $YFI
5: $WRXBinance top 5 bullish reversal strength
1: $IOTA
2: $AAVE
3: $MKR
4: $ALGO
5: $ANT— dyor.net (@DyorNetCrypto) May 11, 2021
IOTA price outlook
IOTA’s recent performance has tracked the broader crypto market. Although trading below its 100-day simple moving average (SMA) of $2.068, the IOTA/USD 4-hour chart shows emerging signs of a reversal after yesterday’s losses.
Bulls were able to defend the $2 support and claw back some of yesterday’s declines. For IOTA to build on this momentum it needs to reclaim and hold above the 100-day SMA at $2.068 and then push past the next resistance at $2.17. If it clears these levels, IOTA could realistically target its seven-day peak of $2.39. However, a sustainable rally of that magnitude will likely require strength from the broader cryptocurrency market.
IOTA/USD 4-hour price chart. Source: Coinalyze
IOTA’s MACD line has just emerged from a bearish zone, which could signal a potential bullish run ahead. The RSI, however, remains below 50, indicating that bears still retain some control. Given growing interest in IOTA’s feeless transaction network, the token may attract additional attention from traders and investors in the coming days and weeks.
If IOTA fails to build on the recent momentum, it risks losing the $2 support. That would put the key $1.81 support level back into focus. A sustained bearish phase could push IOTA down toward $1.54, a level last seen on April 26.