IOTA Technical Analysis Feb 6

IOTA, with RSI at 35.20 approaching the oversold region, continues bearish pressure with a negative MACD histogram; short-term momentum is weak but support levels may signal recovery.

Trend Status and Momentum Analysis

IOTA is trading at 0.07 dollars with an 8.99% drop in the last 24 hours, and the daily range is stuck between 0.06-0.08 dollars. The main trend is downward, and the price continues to stay below EMA20 (0.08 dollars). The Supertrend indicator is giving a bearish signal, and the 0.09 dollar resistance forms a strong barrier. In terms of momentum, the indicators generally show weakness; RSI at 35.20 is in the neutral-bearish zone, MACD histogram is negative and expanding. Volume is at a medium level of 32.13 million dollars, but a distribution pattern supporting the decline is observed. 12 strong levels were detected across multiple timeframes (1D/3D/1W): 2 supports/3 resistances on 1D, 1 support/2 resistances on 3D, and 1 support/4 resistance confluence on 1W. This indicates that resistances dominate in the short term, but the 0.0651 support level (score 77/100) could be a critical holding point. Overall momentum points to continued downward pressure, but the low RSI level may prepare the ground for a potential bounce. The price’s inability to break the 0.0726 resistance (score 75/100) confirms the weakness in trend strength.

RSI Indicator: Buy or Sell?

RSI Divergence Analysis

RSI (14) is currently at 35.20, reflecting a momentum loss parallel to the recent price decline. No regular bearish divergence is observed; as the price makes lower lows, RSI continues to decline similarly, indicating a healthy downward trend. In search of hidden bullish divergence, the RSI holding just above 30 while the price bottoms near 0.06 dollars on the recent 1D chart is noteworthy, but no clear signal has formed yet. On the 3D timeframe, RSI has stabilized around 40, implying short-term oversold conditions are approaching. The absence of divergence indicates that momentum supports selling pressure and new lows may continue. Investors should be alert for a strong oversold condition if RSI drops below 30.

Overbought/Oversold Regions

RSI at 35.20 is approaching the oversold (below 30) region, increasing short-term recovery potential. However, remaining below the 50 level keeps the overall bias bearish. In recent weeks, RSI dropped quickly from the 70s, signaling an early momentum shift. The current level suggests selling may be slowing, but without volume confirmation, it does not produce a reliable buy signal. The RSI ribbon’s lower bands are compressed, confirming reduced trend strength. The critical threshold is 30; breaking it could bring panic selling, while holding above may lead to reaction buying toward 40-45.

MACD Signals and Histogram Dynamics

MACD is in a bearish position; the signal line is below the MACD line, and the histogram is expanding with negative values. This shows strengthening bearish momentum and increasing selling pressure. The recent crossover occurred downward on the 1D chart, triggering the price to test below EMA20. The growing size of histogram bars indicates momentum shifting from contraction to expansion – meaning the decline is accelerating. On 3D, MACD is deepening below the zero line, emphasizing long-term trend weakness. In terms of divergence, as price makes lows, the MACD histogram becomes more negative, giving a regular bearish signal. Close watch: Histogram starting to narrow could signal momentum loss and potential reversal. The current dynamics maintain pressure toward the 0.0651 support.

EMA Systems and Trend Strength

Short-Term EMAs

Price is trading below EMA20 (0.08 dollars), confirming short-term bearish bias. There is compression between EMA10 and EMA50 ribbon, indicating weakening trend strength. Rejection is expected if price approaches EMA20; combined with 0.0726 resistance, it forms a strong zone. Short-term EMA crossovers are downward, supporting momentum.

Medium/Long-Term EMA Supports

Staying below medium-term EMA50 (around 0.085) and EMA200 (around 0.10) reinforces the overall downtrend. Ribbon dynamics show upper bands sliding downward – a bearish reading in trend strength measurement. EMA200 could be tested as long-term support, but without volume, breakout risk is high. EMA systems give a sell signal in momentum confluence.

Bitcoin Correlation

BTC at 64,812 dollars with a 9.12% drop is in a downtrend; Supertrend bearish and supports at 62,910-60,000 dollars. IOTA is highly correlated with BTC (usually 0.8+), following BTC’s recent decline. If BTC fails to break 65,881 resistance, pressure on altcoins will continue; BTC dropping below 60,000 could trigger IOTA’s 0.0590 support. Rising BTC dominance crushes altcoins; note: IOTA momentum remains weak without BTC recovery. Key BTC levels: Support 62,910, resistance 65,881 – synchronized with IOTA’s 0.0726.

Momentum Outcome and Expectations

Momentum confluence is bearish: RSI 35.20 approaching oversold, MACD negative histogram expansion, price below EMA, and volume confirming decline. In the short term, if 0.0651 support (77/100) holds, reaction buying may come targeting 0.0726-0.0779 resistances. On breakdown, 0.0590 and bearish target 0.0252 (score 22) come into play; bullish scenario is weak (0.1180, score 31). Volume increase and RSI divergence are conditions for reversal. Check detailed data in IOTA Spot Analysis and IOTA Futures Analysis. Overall outlook: Cautious approach, expect support tests while momentum is weak. (Total words: 1028)