The quotes of Iota (MIOTA) are going through an unexpected phase of strengthening against the US dollar, which continues today, thanks to the achievement of the new relative highs recently touched at 0.2419. This strengthening has been taking place since the “old” lows reached on December 19th at 0.1559, and has so far brought prices back to levels not seen since November 11th.
The stubbornness with which this rise has risen so far forces us to revise the scenario with respect to what we had budgeted for in the first ten days of January. In fact, prices have already largely surpassed a first resistance which was located at 0.1992/0.2030, and are now aiming for the next resistance, level 0.2548/2586, without there being yet indications of imminent exhaustion of the bullish pressure.
On the weekly candlestick chart we can also see how supports are forming and strengthening straddling the 0.2000 level, the area where most of the buying activity has been recorded in the last 5-8 weeks. It is presumable that this area could constitute a reaction zone in the event of market reversals, and that there could therefore be the conditions for a further increase in February, in the direction of $0.3000.
To more accurately pinpoint the current layout of the technical references, let’s turn to a 30-minute bar graph. Supports are now located at 0.2245/0.2280 and 0.1955/0.1990. These are the levels that, technically, support the bullish scenario now in force. Only with the violation of the 0.1955 level, better if confirmed by at least one lower closing on the 30-minute chart, would a new revision of the technical picture become necessary.
The projections find the main bullish target at 0.3272/3320. On the way to this level there is an intermediate resistance on the 0.2830/2850 line, a level within which some temporary retreat could be triggered within the expected upside.
The technical signal is long from prices not above 0.2450. We believe it is not prudent to intervene upwards from higher levels, as it would expose us to a theoretical risk-loss disproportionate to what the theoretical profit could be. In any case, cautionary stoploss should be placed in violation of the main support. When it is 18.51 CET on Tuesday 24 January, MIOTA is traded on the best world exchanges at $0.2312, up +0.86% on a daily basis.