IOTA has once again grabbed attention in the digital currency sphere due to its recent price movements. Starting from the early days of November 2024, the digital asset has skyrocketed by more than 250%, mirroring the performance of other major cryptocurrencies in the market.
With a noticeable upward trend, IOTA managed to break free from its long-lasting descending trendline, capturing the interest of both large investors and traders.
Analysis of IOTA’s Technical Aspects and Key Thresholds
An examination of CryptoCrypto’s technical analysis revealed that after breaking the trendline, IOTA encountered some resistance in the vicinity of the robust $0.36 level. Besides the horizontal resistance line, the 200 Exponential Moving Average (EMA) was also posing as a barrier at the present moment.
Given the recent price movements of this alternative coin and its historical momentum, in the event of IOTA successfully surpassing this resistance and closing a daily candle above either the 200 EMA or the $0.45 mark, it is highly probable that the price could surge by 50% to reach $0.70 in the near future.
Conversely, the Relative Strength Index (RSI) of IOTA hinted towards a probable price correction or decline in the upcoming days as the asset had entered the overbought zone.
Negative On-Chain Metrics
Nevertheless, this breakout might not be straightforward for this particular altcoin, as major exchanges in the cryptocurrency realm are observing significant inflows. This observation comes from the on-chain analytics provider Coinglass.
$3.8M Inflow of Tokens
According to the data on IOTA’s inflow/outflow on exchanges, there was a notable influx of $3.81 million within the last 24 hours. This data indicates that large investors and institutions have transferred their assets from wallets to exchanges.
In financial terms, inflows to exchanges are typically seen as signals of impending sell-offs in the market and potential drops in prices.
Traders Favor Short Positions
Aside from the whale activity, traders seem to be establishing short positions, as evidenced by IOTA’s Long/Short ratio standing at 0.88. A ratio below 1 denotes a strong bearish sentiment prevailing among traders. Currently, 53.20% of prominent traders have taken short positions, while 46.80% are holding long positions.
Given the amalgamation of on-chain metrics and technical analysis, it appears that traders and investors might be gravitating towards a bearish stance.
As of now, IOTA is trading around $0.34, experiencing a 15% decline in price over the last 24 hours. During this same period, its trading volume has surged by 200%, showcasing strong engagement from traders and investors following its recent breakout.