IOTA Holds Potential To Rally Despite Recent Correction

Wondering about a world where IoT devices will be able to interact within themselves, where amazon Alexa seems like a foundational device allowing huge connected features and accessibility with just one device. 

IOTA’s distributed ledger is working on similar technology, with billions of IoT devices already existing in the market. It’s just the right time before someone taps into this industry. MIOTA token is its official tender to pay transaction fees for smart contracts and other transactions between different devices connected to its network. 

The outlook of this token seems positive as it’s a unique prospect being explored by a blockchain in 2022. IOTA has a market capitalization of $893 million, with an entire 2.78 billion tokens circulating in the market. Of this supply, around 49% of MIOTA token is already staked with the prospect of earning staking rewards and aiding in authentic ledger entries. 

IOTA Price Analysis 

MIOTA Token has failed to surpass the May 2022 resistance level and repeats the historical trend of negative action from the $0.365 level. Technical indicators confirm a negative outlook for the short term.

IOTA chart

IOTA attempted to test 100 EMA curves last week, but the buying sentiment did not support this movement. As a result of holding MIOTA tokens for too long without any positive breakout, buyers are actively looking to book some profits or diversify their cryptocurrency portfolio as valuation is heading down without any significant rise in selling volumes. 

Moreover, since RSI has succumbed below the neutral zone of 50, the outlook in the short term seems negative. Even the MACD indicator has marked a bearish crossover. Now, it’s time to test the buyer’s capabilities to defend a negatively trending MIOTA token. Although traders should refer to the IOTA price prediction to get more detailed insights into the future of IOTA. 

The immediate resistance based on price action sits at $0.365, while the support level is available at the $0.235 level, which is 26% below the latest trading value of $0.320. Based on current price actions, the last buying action witnessed on August 10 seems to support this token’s uptrend. 

On longer duration charts, the negative candle of the current week has already engulfed the positive price action of the last two weeks, which confirms the strong resistance at $0.365.

Trevor Holman

Trevor Holman follows crypto industry since 2011. He joined CryptoNewsZ as a news writer and he provides technical analysis pieces and current market data. He is also an avid trader. In his free time, he loves to explore unexplored places.

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