IOTA is down more than 10% in the past 24 hours and is struggling to stay above the $2 level amidst a massive sell-off

The cryptocurrency market is in a sea of red again as the prices of Bitcoin, Ether, Binance Coin and virtually all the other leading cryptocurrencies are currently down. IOTA is also affected by the market dip, with its price currently down by more than 10% in the past 24 hours.

Despite the massive sell-off, IOTA bulls have been able to defend the $2.0 support level over the past few hours. Maintaining the price above that level could help the cryptocurrency bounce back and regain its weekend price.

The cryptocurrency could soon resume its upward movement if the bulls regain control of the market.

IOTA price outlook

IOTA’s performance over the past few hours is in line with the broader cryptocurrency market. Although it is trading below its 100-day simple moving average ($2.068), the IOTA/USD 4-hour chart shows good signs of a reversal following yesterday’s losses.

The bulls have been able to defend the $2 support point and could reverse yesterday’s losses. IOTA needs to start by surpassing its 100-day SMA ($2.068) and breaking past the next resistant point at $2.17. Doing so would give it a real chance of reaching its 7-day high of $2.39. IOTA will need help from the broader cryptocurrency market to mount a sustainable rally that could lead to such a reversal, however.

IOTA/USD 4-hour chart. Source: Coinalyze

IOTA’s MACD line just broke out of the bearish region, indicating that a bullish run could follow. Its RSI is still below 50, suggesting that the bears haven’t relinquished control of the market. Given the rave about IOTA’s feeless transaction network, the cryptocurrency could attract the attention of more traders and investors in the coming days and weeks.

If IOTA fails to build on the momentum established in the past hour, it could lose the $2 support point. This could bring the $1.81 major support level into focus. An extended bearish cycle could see IOTA dip to the $1.54 mark that was last seen on 26 April.

This post was originally published on Coinlist.