IOTA at the beach surfing Elliot Waves: Main target of $0.80

29 May, 2019 | Updated: 29 May, 2019
by Lourens Pepler
Price Analysis
IOTA at the beach surfing Elliot Waves: Main target of $0.80

Following some good news, IOTA seems to have kicked off its bull run. Currently up 100% from its 2019 low, IOTA is showing us that this is only just the beginning.

Highlights:

- Above 200EMA on the daily

- $0.60 first target

- Elliot Wave forming, currently in wave 3

Looking for the next resistance levels on the daily, we can spot three interesting price points. The first level at $0.50 has already been hit and has proven its resistance when the price was not able to break through it. Ahead of that, we have the $0.60 level, which will be our first main target.

In terms of support, we have $0.40 below us. This is also the same price at which the 200EMA is resting, adding some confluence in our support line.

IOTA/USD chart provided by Tradingview

Zooming in on the hourly chart gives us a better view of what lies ahead. The first thing we notice is that an impulse wave has completed, which we are able to measure with our favorite tool, the Fib extension tool. We also see that an Elliot Wave structure is forming and that we are currently in wave 3.

First, we will use the Fib tool to measure this first impulse. Straight away we can see the confluence in our higher time frame analysis, with our resistance lines lining up almost perfectly with the Fib extension lines. We also notice that the 1st wave only managed to retrace 50%, which is a very bullish sign.

IOTA/USD chart provided by Tradingview

Next, we plot out the Elliott Wave to help lay out the possible structure that lies ahead. One of the rules for Elliott Wave is that wave 3 cannot be shorter than wave 1 in length, which it currently is. Therefore we will assume that this wave will push higher and reach the 161% extension. The RSI is on our side with it generally trading above 60, indicating bullish sentiment.

IOTA/USD chart provided by Tradingview

IOTA seems to be on the right track with all indicators pointing towards more gains. After the first target of $0.60 is reached, we can expect a retrace towards the top of wave 1 ($0.46) before we will continue and complete the Elliott Wave structure.

Are you taking advantage of these impulsive moves on alts, or is your main focus with Bitcoin? Let us know in the comments below!

Disclaimer: Keep in mind this not investment or trading advice, just the opinion of our analysts. As always, do your own research, make your own decisions.

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