IOTX Log Chart Suggests 250% Gains on the Cards

IOTX/USDT has been gradually ebbing higher over the last few days since finding a floor back on the 13^th of December at the previous monthly low just above $0.10 per token. The cryptocurrency, which is the native token for the decentralised IoTeX cryptosystem, is currently trading in the $0.12s, up more than 20% from these recent lows, putting its market capitalisation at just under $1.2T.

IoTeX is a blockchain platform focused on enhancing the development of the Internet of Things (IoT) and has been widely praised by crypto enthusiasts for its potential scalability, privacy and adaptability. Many crypto analysts believe the platform could be a significant beneficiary as augmented reality, of which the Internet of Things is set to play an important role, develops and garners greater mainstream adoption. That would translate into a very positive outlook for IOTX.

But even after the 20% gain over the past eight days, IOTX/USD continues to trade more than 50% below the record highs it printed back in the first half of November. On the 13^th of November, OITX/USDT hit $0.263, but this was quickly followed by a swift pullback towards the $0.10s in tandem with a broader pullback in cryptocurrency prices from early November highs.

Short-Term Technicals Looking Bullish

The short-term technicals for IOTX/USD look bullish. The cryptocurrency recently broke to the north of a downtrend that had been capping the price action since early December. That should open the door to a move towards the next key area of resistance in the $0.145 area. Looking at the 14-period Relative Strength Index (RSI) on the four-hour candlesticks, the cryptocurrency does look close to entering short-term overbought territory.

Perhaps some bulls may prefer to wait for a pullback to the $0.11 area and a retest of the prior downtrend before reloading on long positions and targetting the next resistance area. Beyond the $0.145 resistance area, the next key zone to watch out for is around $0.167.

Longer-Term Technicals Also Suggestive That Bull-run Continues

Looking at some longer-term technical indicators for IOTX/USDT, things are also looking bullish. The cryptocurrency’s 12-day exponential moving average (EMA) recently moved back above its 26-day EMA, sending the Moving Average Convergence Divergence (MACD) indicator into positive territory for the first time since mid-November.

In the past six or so months, buying IOTX/USDT when the MACD turns positive and then closing the position when it turns negative has has been a highly profitable trading strategy. Thus, some longer-term technicians may have taken the recent cross-over as a medium-term bullish indicator.

Meanwhile, IOTX/USDT’s 14-day Relative Strength Index (RSI) is close to neutral just under 50.00, suggestive that there is plenty of room for long positions to build and the cryptocurrency to rally before conditions become overbought, raising the risk of profit-taking.

Perhaps the stronger bullish case come from looking at IOTX/USDT on one-week candlesticks on the logarithmic chart. The cryptocurrency continues to trend higher and respect upwards trendlines, the most important of which at present is an uptrend linking the mid-July/early August, October and December lows.

The fact that the long-term uptrend was so well respected suggests that IOTX/USDT’s pattern of printing ever higher highs followed by ever higher lows continues. Technicians looking at the log chart will be looking for a move back to record highs above $0.25 and on towards $0.45. That would mark an astonoshing 250% gain from current levels.

Traders should be cognizant of the fact that if this long-term log chart support is broken to the downside, the losses could be equally as swift and catastrophic as the gains might be euphoric. The next significant support on the log chart is the September lows around $0.05 per token, which would mark a 60% drawdown from current levels.