IOTUSD closes higher for the 2nd day in a row
IOTA/US Dollar Index (IOTUSD) Technical Analysis Report for Oct 13, 2018 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, IOTUSD finished Saturday at 0.50 gaining $0.01 (2.04%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (IOTUSD as at Oct 13, 2018):
Saturday's trading range has been $0.02 (4.08%), that's below the last trading month's daily average range of $0.04. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for IOTUSD.
After having been unable to move above 0.51 in the prior session, the cryptocurrency ran into sellers again around the same price level today, failing to move higher than 0.51.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 0.56. The last time this happened on August 12th, IOTUSD actually lost -8.00% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could speed up should prices move below the nearby swing low at 0.47 where further sell stops might get triggered. With prices trading close to this year's low at 0.40, downside momentum could accelerate should IOT break out to new lows for the year.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the lower Bollinger Band" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for IOT/USD. Out of 14 times, IOTUSD closed lower 71.43% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 71.43% with an average market move of -7.58%.
With five out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are ETHUSD gaining 1.6% and EOSUSD closing 1.54% higher. On the flipside the worst performer has been XRPUSD closing -0.38% lower. Looking at the other Minor Cryptocurrencies, the winners of the day have been STEEMBTC surging 5.26% and SCBTC closing 4.08% higher. The worst performers of the day have been BCNUSD tanking -4.43% and BTGBTC closing -2.26% lower. Read more