IOTA Price Analysis: IOTA Surmounts Major Bottleneck, Prepares For 60% Rally To $2.5
- IOTA leads cryptocurrency market rally alongside Solana and hits a four-month high at $1.7.
- The technical picture appears highly bullish, as reinforced by the MACD and the Parabolic SAR indicators.
IOTA booked a seat in the fast paced rocked to the moon from the beginning of September, gaining nearly 70%. The Tangle-backed cryptocurrency project has not slowed the uptrend, especially after cracking the 200-day Simple Moving Average (SMA).
At the time of writing, the token changes at $1.56 ahead of a much-awaited liftoff to $2.5. Hence, it is essential to close the day above $1.7, a move that may validate the uptrend.
IOTA Price Breakout To $2.5 In The Cards
The Moving Average Convergence Divergence (MACD) is a momentum oscillator utilized in predicting trading trends but rarely used to identify overbought and oversold conditions. The indicator manifests on a chart with a couple of trendlines oscillating with no boundaries.
Note that as the 12-day EMA recently crossed above the 26-day EMA, the chances for IOTA to gain ground to $2.5 up surged. As long as the MACD keeps moving higher above the mean line, the uptrend will remain intact.
IOTA/USD Daily Chart
An incoming bullish signal will likely blast IOTA above the immediate barrier reinforced at $1.7. The daily chart shows the 50-day Simple Moving Average (SMA) about to lift above the 100 SMA. While this is not a golden cross, it implies that the uptrend is in the bulls' hands, at least for now.
The Parabolic SAR affirms IOTA’s progressive rally as observed on the four-hour chart. This technical indicator gives an insight into the general trend of an asset. If correctly used, it helps identify possible entry and exit positions.
Some traders refer to the Parabolic SAR as the “stop and reversal system.” The indicator prints a series of dots (parabolas) on the chart, tracking price action accordingly as shown in the chart below.
Typically, a bullish Parabolic SAR is printed under the prevailing IOTA price, implying that the trend is generally upward. The wider apart the dots are, the stronger the trend. Hence, it is imperative to say IOTA’s path with the slightest resistance is upward.
IOTA/USD Four-Hour Chart
Realize that the Relative Strength Index (RSI) is holding in the overbought area (above 70). In bull markets, the RSI tends to stay overbought longer. Therefore, IOTA may still have room to explore, especially if the hurdle at $1.7 comes out of the way.