As we correctly predicted on July 2, the IOTA performed a perfect re-test pattern and continued its downside move. The coin first moved out of the wedge and pushed higher after the consolidation move. Then it raced to the key horizontal resistance line, previous support, peaked above the resistance line two times before rotating back lower as it was unable to close above the resistance line. Usually, when you test support/resistance two times and the result is a failure, a strong move accompanies the following price action. The price then pushed lower in the first wave, created a minor correction, and then went almost vertically down to the key support zone around 0.0001300, the line that provided support to the coin two times in the past. IOTA again reacted from this level and bounced but the bearish force is too strong at the moment and we saw brake of the support and a close well below it.
In the same manner, we expect the coin to consolidate below then return higher to re-test the previous support. Given how strong support acted before, it is to be expected that the coin will fail and rotate back lower.
In the same manner, we expect the coin to consolidate below then return higher to re-test the previous support. Given how strong support acted before, it is to be expected that the coin will fail and rotate back lower.