IOTAUSD analysis and the middle-term forecast for IOTA. Key levels and general prospects for the innovative altcoin.
In this post I applied the following tools: fundamental analysis, all-round market view, oscillators and indicators, key levels, trendline analysis, Renko and Linear break charts.
Today, I’d like to discuss an interesting altcoin IOTA.
As usual, first of all, let’s analyze fundamental factors for the coin. As it is my first forecast for this altcoin, I’d look to start with a general description of the coin, its characteristic and general features.
Without going into details, it is a protocol that enables participant make transactions without any commission at all. The technology’s feature is that, in fact, it is not blockchain. There no blocks in the IOTA protocol. It is more like a torrent tracker, but it hasn’t a single server, that is a completely decentralized network with a very high security level.
The idea was basically brought to life to create the so-called Internet of Things. This Internet will be used not by humans, but by their household utilities, from a lamp and a pen up to a fridge, air-conditioner or a toaster. In fact, IOTA is the environment for a real smart home of the future, where all things would be able to communicate with each other by means of micro-transactions.
It may sound like science fiction now, but analysts already project that about 50 billion of things all over the world will be connected to the Internet of Things in just ten years or so.
Of course, like any other cryptocurrency, IOTA can be applied as a common payment means; due to its protocol’s special features, the cryptocurrency doesn’t engage any transaction costs.
IOTA Fundamental analysis
In general, IOTA trend had been following the trends of other altcoins until recently.
You see in the chart above that all altcoins have been moving quite close to each other, almost repeating each mother's trends. But, since August 27, IOTA seems to be crazy, having been 50% up.
The surge results from the launch of a new client by the coin designers, PoWaaS (PoW-as-a-service). This software is a real revolution. It enables users to keep the system in the working mode without booting the CPU or the graphic card. This technology will provide the fastest and the safest transactions between the network wallets, and will, finally, make the Internet of Things real.
So, the IOTA project springs for the finish, turning from a fiction idea and a prototype into a real, operating product.
Therefore, according to fundamental analysis, this news bits creates a strong support for bulls, enabling them to reverse the IOTA global trend.
To make sure in the trend reversal, I suggest IOTAUSD technical analysis.
IOTAUSD technical analysis.
In the monthly chart above, the IOTAUSD ticker is trading in the global bearish trend. However, the bottom tail of the last candlestick hasn’t reached the low of November, 2017. In addition, the tails itself has a long shadow, suggesting buyers support at these levels. The candlestick itself looks like a bullish hammer. The pattern will be complete when the next candlestick appears, it is already clear, it must be white, and it would be the best if it breaks through the last local high.
In the IOTAUSD weekly chart the situation is not clear yet. On the one hand, oscillators are in the oversold zone, and the last weekly bar is closing white, breaking out the highs of all previous bars. On the other hand, the ticker is in the clear bearish channel and the support level form its top borders is very close.
In the daily chart above, you see that the MACD bullish divergence is working out the growth signal (the blue line), at the same time RSI stochastic indicated a shot after the long accumulation during summer. In general, the price surge has been quite expected...It’s a pity, nobody paid any attention to the instrument before(
However, the ticker has approached the bearish channel’s border by now. At the same time, trading volume is increasing, which means a strong fight between bulls and bears. In general, it doesn’t suggest an easy price rise; sellers are willing to fight for their levels.
The IOTA 4H timeframe is, traditionally, analyzed according to my experiment.
In the chart above, the Line Break chart and Renko indicate that the price will continue going up. Moreover, Renko is showing the bullish convergence, which is an additional signal for bulls (the box size is 0.045 USD).
Japanese candlestick chart indicates oppositely-directed movements in the price chart window and in MACD; in the present context, it may suggest continuous sideways trend.
Fundamentally, IOTA is an excellent instrument for long-term investment for the next few years.
According to technical analysis, September is going to be very indicative to definitely state the reversal. In general, everything suggests a moderate bullish correction; I can’t yet say how it will finish.
The IOTAUSD trading scenario for the next two weeks looks like this:
The channel’s upper border strongly influences the ticker. Due to its influence, in the first week of September, IOTAUSD will be trading in a rather strong sideways trend with a wide range. If the range grows narrower, it can form an equilateral triangle and break through the bearish channel’s border.
The nearest growth target is at the centre line of weekly Keltner channel at 1.1140 USD.
The target is quite likely to be reached during September, but, of course, it strongly depends on the general market sentiment.
That is my IOTAUSD trading scenario. Go on following the rate and staying informed. I wish my Ethereum price predictions are useful for you!
I wish you good luck and good profits!
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