In the recent days, IOTA has moved higher, breaking out of the wedge that trapped the price action in the last week or so. After moving sideways, the price pushed below the previous low in early June and it did not stop since then. Only around 0.0001530 the coin created series of the same lows while having lower highs - which ultimately meant that one out of two lines has to break. In the end, the oversold RSI contributed to the price heading higher, breaking out of the wedge and making three consecutive green candles on the daily chart.
So, what happens now? A million dollar question for every trader. If we pursue a classic pattern then we can expect the price to return and re-test a key bull-bear horizontal line around 0.0001810. This level, as it can be seen on the chart, has reacted four times to the tests either from the up or down. Every time we saw a reaction from this level which has established it as a major bull/bear line that can define the price action in the midterm. Hence, our advice is to for longs not to enter any trade as long as we are below the line, if however, we manage to break higher, then a bigger move to the upside can be facilitated. If we see a failed re-test, which is a more likely scenario given that we are in the bear market currently, the price should rotate lower and head for new short-term lows possibly extending all the way to the next key support level around 0.0001300.
So, what happens now? A million dollar question for every trader. If we pursue a classic pattern then we can expect the price to return and re-test a key bull-bear horizontal line around 0.0001810. This level, as it can be seen on the chart, has reacted four times to the tests either from the up or down. Every time we saw a reaction from this level which has established it as a major bull/bear line that can define the price action in the midterm. Hence, our advice is to for longs not to enter any trade as long as we are below the line, if however, we manage to break higher, then a bigger move to the upside can be facilitated. If we see a failed re-test, which is a more likely scenario given that we are in the bear market currently, the price should rotate lower and head for new short-term lows possibly extending all the way to the next key support level around 0.0001300.