IOTA Price Analysis: IOT/USD short-term correction may attract new sellers to the market

IOTA has been under selling pressure since the start of the week.
The short-term picture implies that the price is may be ready for a correction.
The longer-term picture is still bearish as long as the price is below $0.4000.

IOTA, the 23d digital asset with the current market capitalization of $923 million, has lost over 4% since the start of Thursday and since the beginning of the day. At the time of writing, IOT/USD is changing hands at $0.3390, down from the intraday high of $0.3589. IOTA has been moving sharply down since August 24, after a failed attempt to settle above $0.4000.

IOT/USD: The technical picture

On the intraday charts, IOT/USD has come close to oversold territory. As the RSI has started to reverse to the upside, the price may follow the lead and regain some ground with the local resistance created by the intraday high and 1-hour SMA50 currently at $0.3570. Once this area is cleared, the upside momentum may gain traction with the next focus on $0.3730 (1-hour SMA100) and $0.3750 that served as a lower boundary of the previous short-term consolidation channel.

IOT/USD 1-hour chart

From the long-term point of view, the picture is less optimistic as the price has printed three bearish candles and there are no signs of reversal as of yet. The daily RSI also points downwards, which means the short-term recovery may end in a new bearish wave with the next focus on $0.3160 (daily SMA50).

IOT/USD daily chart

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