IOTA/USD Breaks Above $1.20 as Bulls Aim to Recover From Steep Drop to $0.88
As cryptocurrency sentiment improves, many altcoins have attempted recoveries during the recent sharp corrections. Binance Coin, Polkadot, Chainlink and NEM have shown notable gains and double-digit moves over the past 48 hours.
IOTA bulls are pursuing a similar rebound after lows of $1.02 on February 28. IOTA trades near $1.90 against the US dollar, up roughly 5% in the last 24 hours. The token has broken out of a short-term falling wedge pattern, suggesting a possible retest of prices around $1.40. Additional gains could push prices toward $1.59.
IOTA/USD Daily Price Chart Analysis
Following a steep decline in the second half of February, IOTA/USD could remain above $1.10 after falling from highs of $1.59 to lows of $0.88.
While the recovery has occurred in several staged pullbacks, technical indicators suggest buyers are likely to take control and push IOTA/USD toward the February 19 high near $1.59.
The bullish case on the daily chart is supported by price holding above the 20-day EMA ($1.13). That support has allowed upward momentum to build, increasing the chances of a break above overhead resistance and a higher daily close.
Buyers are currently testing resistance at the 0.5 Fibonacci retracement level near $1.24. A decisive break above this supply zone could see prices climb past the 0.382 Fib level ($1.32) and head toward the 0.236 Fib level ($1.43).
Bulls will likely need to overcome a significant horizontal barrier before attempting a retest of the $1.59 level.
Alongside the rising 20-day EMA, the 50-day EMA ($0.88) is also trending upward. The RSI remains firmly above the midpoint, indicating bulls retain the upper hand.
IOTA/USD 4-Hour Price Chart Analysis
On the 4-hour chart, IOTA/USD trades above both the 20-period EMA ($1.17) and the 50-period EMA ($1.18). The pair is also positioned above a descending trendline that formed part of the earlier wedge pattern.
Although the breakout was not overwhelmingly strong, a steady move above the immediate resistance at $1.23 (0.5 Fib level) could give bulls the chance to target $1.32 (0.382 Fib level). A further increase in buying pressure may drive IOTA toward $1.42 (0.236 Fib level) before renewed upside momentum shifts focus back to the recent highs near $1.59.
Conversely, IOTA/USD would turn bearish if the pair falls below the trendline support. Such a move could extend sideways action near $1.10 and invite sellers. In that scenario, downward pressure might target $1.00 and the recent lows around $0.88.