IOTA was previously trading inside triangle consolidation patterns to the dollar and bitcoin but has since broken down. This signals that further losses are underway for this particular digital asset.
Price enjoyed strong gains last month when it was reported that the big names of the tech industry are partnering with IOTA for data transfers. However, Microsoft recently clarified that they are not partnering up.
With that, IOTA broke to the downside against the dollar, even as the US currency also suffered losses after the FOMC announcement. Although the Fed hiked rates as expected, Chairperson Yellen reiterated her downbeat inflation outlook and explained that the tax cuts would merely lead to a short-term boost in economic growth.
IOTA appears to have completed its breakdown retest to the dollar and is now trading below a short-term descending trend line. The 100 SMA is crossing below the longer-term one to indicate a pickup in selling pressure while stochastic is hovering at overbought levels to signal rally exhaustion.
RSI is turning higher, however, signaling that another pullback to the broken triangle support may be possible. If bulls strengthen, price could move back above the triangle resistance to reestablish its climb.
Against bitcoin, IOTA is just pulling up from its dive and testing the broken support near the 50% Fib. If this continues to keep gains in check, price could dip to the swing low or lower.
The 100 SMA has already crossed below the longer-term 200 SMA on this chart so the path of least resistance is to the downside. The 100 SMA is also currently holding as dynamic resistance as it lines up with the broken triangle bottom and retracement levels.
RSI is also pulling higher for this particular pair so IOTA could follow suit. Bitcoin is also under a bit of pressure following the CBOE futures launch as investors are growing more skeptical of this digital asset after soaring to one record high after another.