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IOTA (MIOTA) Faces Stiff Resistance at the 100 DMA Curve!

IOTA (MIOTA) changed its trading sentiment drastically after witnessing resistance at the 100 DMA curve. Technicals may reverse as bearish engulfing has begun.

Despite its scalability and faster transactions, IOTA isn’t considered a blockchain because there are none. Yes, IOTA doesn’t process transactions based on block size as there isn’t any concept of blocks. Rather, it uses a more advanced concept classified as a Directed Acyclic Graph. The transactions do not require validation from other node operators or solving complex mathematical problems. There are much wider advantages of using DAG in place of a blockchain, and some of them include faster transactions with a higher number of users and lesser to no fees.

Currently, IOTA has no fees, and the use of MIOTA tokens is limited to storing transactional data. MIOTA is stored in wallets protected by an 81-character seed, similar to a password. There are some threats with strong computational devices after IOTA intends to connect the machine with the Internet of Things and enable intra-machine transactions in the future. The recent attack on its network in DDOS, while shutting down a coordinator node, can bring the network down.

During one of its recent attacks, the IOTA foundation had to shut down its coordinator node to prevent further thefts of funds. While the theft was stopped before it could become bigger, IOTA demonstrated its centralized control.

IOTA ranks 56th with a market capitalization of $887,740,271 and 100% liquidity of its 2.78 billion token supply. IOTA has managed to break out of its previous consolidation that was prolonged for months. Currently, the resistance of the 100 DMA curve it’s taking its toll, and the price is consolidating between the previous upper band and 100 DMA with a prospect of a breakout. Will there be a breakout? Read our MIOTA prediction to know!

IOTA CHART

June 10 to July 28 saw the MIOTA being consolidated. The support near its consolidation marked a significant gain in just seven days. As 100 DMA is considered a fundamentally testing level, assets often face difficulty surpassing this level. The breakout witnessed on July 30 was strong but not enough to breach the seller’s intentions. During the peak gain phase, RSI momentarily came closer to the overbought zones but immediately retracted to 57 as MIOTA faced challenges. 

The MIOTA price action is still devoid of reaching the retraced level of May 2022 witnessed after the price crash. Hence, it would be safer to assume that the potential of buyers is not enough on the short-term price projections. Resistance of $0.35 is set to move downwards, while support from bottom levels could incite a breakout. Waiting for the price action during this phase will make it easier for investors to make a wiser decision on the MIOTA price action.

IOTA PRICE CHART

MIOTA token on weekly charts covering the data since its inception in the latter half of 2017 shows the current prices to have reached the dormant cycle level seen between 2019 and 2021. Only a change in the dynamics of the digital transaction can incite users to try new blockchains, or successful implementation of IOTA foundation expectations could work in favor of the IOTA price hike. RSI on weekly charts has emerged from the lows of the oversold range and is now heading towards 40, while MACD openly supports a bull run.

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