IOTA Price Analysis: IOT/USD stares into a rising wedge pattern breakdown

IOTA price is the worst-hit coin in a Bitcoin bearish market. The cryptoasset is trading 2% lower on Tuesday after adjusting from the value of $0.2042. Bitcoin has lost 1.87% on the day to trade at $9,548. Ethereum has not been spared by the selling pressure, losing 2% while XRP is down 1.73% to trade at $0.2017.

Meanwhile, IOTA is trading at $0.1990 amid a building bearish trend. Recovery from May lows at $0.0742 has been gradual but steady. However, the 50% Fibonacci level taken between the last swing high at $0.3679 to a swing low at $0.0742 became a hard nut to crack. In the wake of this resistance is the ongoing retreat, targeting the confluence support at $0.1872 (formed by the 100-day SMA and the 38.2% Fibo).

According to the RSI, consolidation is likely to take over from now and into the next sessions. The same sideways action is emphasized by the MACD’s horizontal motion above the mean line. Consequently, it is essential that confluence support is defended by all means. Otherwise, the formation of a rising wedge pattern puts the progress made in the last two weeks in jeopardy. If a reversal comes into play, expect IOTA to seek support at the 50-day SMA ($0.1716), $0.1500 and $0.1000.

IOT/USD daily chart