IOTA embarked on a huge rally over the weekend, but its value is now down by 6% after failing to break past the $1 resistance level
The cryptocurrency market entered a consolidation period over the past 24 hours following a massive rally during the weekend. Bitcoin breached the $40k mark for the first time in weeks while Ether attempted to reach $2,500.
However, the bears regained control, with Bitcoin’s price now trading in the $37k region and Ether now below $2,300. IOTA lost 6% of its value over the past 24 hours, dropping to the $0.70 region after failing to breach the $1 resistance point during its recent rally.
However, the general outlook for IOTA and the broader cryptocurrency market remains positive in the medium and long term.
— Michaël van de Poppe (@CryptoMichNL) July 27, 2021
IOTA price outlook
The IOTA/USD 4-hour chart is in a bearish trend at the moment. However, it is slowly recovering from recent losses, with IOTA now up by over 1% over the past 1 hour. At the time of this writing, IOTA looks as if it’s about to cross the $0.760 mark and surge higher.
IOTA/USD 4-hour chart. Source: Coinalyze
If the bullish sentiment returns and IOTA continues with the upward trend it started an hour ago, then the IOTA/USD pair could look to surpass the 24-hour high of $0.8347. Unless there is an extended market rally, the resistance level around the $0.85 mark should limit any potential upside. In the event of an extended market rally, IOTA could look to break past the minor support point at $0.90 and head towards $1.0
However, the bears have controlled the market in the past 24 hours and might resume doing so. If the trend of the past 24 hours continues, then IOTA risks losing the support level around $0.702. The major support level established around the $0.63 region should limit any further potential decline in value.