IOTA slumped by 11.97% on Wednesday, following a 0.16% gain on Tuesday, to end the day at $0.4404.
A mixed start to the day saw IOTA move to a mid-morning intraday high $0.5095, breaking through the day’s first major resistance level at $0.5089 before succumbing to cryptomarket forces and a broad based sell-off.
Sliding from mid-morning, IOTA tumbled through the day’s major support levels to an intraday low and new swing lo $0.3501 before finding much-needed support to break back through to $0.44 levels. In spite of the partial recovery, IOTA was unable to break back through the day’s third major support level at $0.4687, with the sell-off bringing to end weeks of debate on whether the benign trading environment was the end of an extended bearish run or the beginning of something much worse.
Wednesday’s double-digit sell-off reaffirmed the extended bearish trend formed at early May’s swing hi $2.6977, IOTA sitting some way off the 23.6% FIB Retracement Level of $0.9041 and the 38.2% FIB Retracement Level of $1.247 that needs to be broken through to signal a near-term bullish trend formation
At the time of writing, IOTA was down 5.88% to $0.4145, with a start of a day slide seeing IOTA fall from a morning high $0.446 to a morning low $0.3982 before finding support, the moves through the early part of the day leaving the day’s major support and resistance levels left untested.
For the day ahead, a move back through $0.4333 to the morning high $0.446 would support a run at $0.50 levels to bring the day’s first major resistance level at $0.5166 into play, though for IOTA to have a chance at recovering the morning’s losses, the Bitcoin Cash hard fork will need to go through smoothly and in favor of Bitcoin Cash ABC, which is leading the way on the futures market when pitted against Bitcoin Cash SV this morning.
Failure to move back through to $0.4333 by the early afternoon could see IOTA take another hit later in the day, with a pullback through the morning low $0.3982 bringing the day’s first major support level at $0.3572 into play, though the news wires will need to be quite dire for IOTA to slide through to Wednesday’s new swing lo $0.3501.
Some volatility ahead, with direction ultimately hinged on today’s hard fork that could cause some chaos should the hash power sit with Bitcoin Cash SV.