IOTA has once again stirred the cryptocurrency space with its recent price performance. In fact, since early November 2024, the token has surged over 250% alongside other major cryptocurrencies in the market.
IOTA has garnered significant attention from whales and traders as it broke through a long-term downward trend line with strong upward momentum.
IOTA technical analysis and key levels
After breaking the trend line, IOTA seems to be struggling near a strong resistance level at $0.36. In addition to the horizontal resistance level, as of the time of writing, the 200 Exponential Moving Average (EMA) is also acting as a resistance level.
Based on the recent price trends and historical momentum of altcoins, if IOTA breaks this resistance level and closes above the 200 EMA or $0.45 on the daily chart, it is likely to soar 50% to $0.70 in the coming days.
At the same time, as the asset is in the overbought zone, the Relative Strength Index (RSI) of IOTA suggests that a pullback or decline in price may occur in the coming days.
Bearish on-chain indicators
However, this breakout has not been easy for altcoins, as exchanges in the cryptocurrency space have witnessed significant inflows of capital.
3.8 million dollars in token inflow
According to IOTA's spot inflow/outflow data, exchanges recorded a massive inflow of $3.81 million over the past 24 hours. This data indicates that whales and institutions have transferred their held assets from wallets to exchanges.
In the financial industry, inflows into exchanges are often viewed as indicators of market sell-offs and potential price declines.
Traders betting on shorts
In addition to whale participation, traders seem to be establishing short positions, with IOTA's long/short ratio showing 0.88. A ratio below 1 indicates strong bearish sentiment among traders. As of this writing, 53.20% of top traders hold short positions, while 46.80% hold long positions.
This combination of on-chain indicators and technical analysis suggests that traders and investors may be shifting their positions to bearish.
As of the time of writing, the IOTA trading price is close to $0.34, having fallen 15% in the past 24 hours. During the same period, its trading volume surged by 200%, indicating active participation from traders and investors in its recent breakout.
