IOTA has enjoyed a stellar week, but the cryptocurrency is now consolidating alongside the broader crypto market
The general cryptocurrency market has enjoyed a stellar week so far, with prices of most cryptos up by 10% or more. IOTA is one of the top performers, rising by 20% over the past seven days. However, after a rally comes a consolidation period and the prices of most cryptos are currently in the red zone.
Bitcoin has dropped towards the $45,000 mark after crossing $46,000 yesterday, while Ether dropped below $3,200. IOTA reached a weekly high of $1.121 yesterday but has pulled back and is now trading just below $1.040 per coin.
While the market might be consolidating at the moment, the general outlook remains positive, and analysts and market experts are confident of the medium and long-term performance of cryptocurrencies.
IOTA price outlook
The IOTA/USDT 4-hour chart remains bullish despite the cryptocurrency currently trading in the red zone. At the time of writing this report, IOTA is down by 1.29% over the past 24 hours but remains up by 20% in the past seven days.
The bulls will have to defend the first major support at $0.9952 if they stand a chance of reversing the trend and continuing the rally. IOTA’s 4-hour 100 simple moving average ($0.8944) should limit further downward movement over the coming hours. Unless there is an extended market sell-off, IOTA should steer clear of the second major support level at $0.8763.
IOTA/USDT 4-hour chart. Source: Coinalyze
In the event that the bulls regain control of the market, IOTA would need to cross the resistance level at $1.0956. A movement past that point would bring the next major resistance at $1.12 into focus, giving IOTA enough momentum to set a new 30-day high. If the broader market embarks on an extended rally, IOTA could look to surpass the $1.16 resistance level in the coming hours or days.