IOTA shows a bullish fair value gap retest after a market structure shift, suggesting potential continuation if support holds. However, recent rejection and bearish momentum indicate short-term weakness for the IOTA price. Upside depends on confirmation, with invalidation below key support.
At the time of writing, IOTA is trading at $0.05597 with a 24-hour trading volume of $9.71 million and a market capitalization of $248.75 million. Following the signs of stability over the last 24 hours, the traders are eager to see if the fear value gap retest could trigger a bullish wave or push the price deeper.
Source: CoinmarketCap
Also Read: IOTA Price Analysis: RSI at 38.31 Signals Recovery Toward $0.06 Targets
IOTA FVG Retest Points to a Breakout toward $0.0671
The crypto analyst Crypto Patel revealed that IOTA is showing a technically significant setup as the price retraces into a bullish fair value gap following a confirmed market structure shift. The higher timeframe structure remains intact, suggesting continuation potential despite the short-term pullback.
Liquidity has been swept internally, indicating possible preparation for expansion toward higher resistance zones above for the IOTA price in the coming sessions.
The IOTA price is retracing towards the bullish fair value gap, which is an area viewed by traders as a potential demand level, which means that the bulls could come back into play if the structure holds up.
The presence of liquidity above suggests that the price may be heading to the next level. However, the bias remains bullish but awaits confirmation on the lower time frame structure to go for the upside targets.
Source: Crypto Patel’s X Post
In case of the emergence of a positive reaction from the FVG area in the asset, the IOTA price may make a move towards key liquidity areas such as 0.0610, 0.0650, and 0.0671.
However, in case of closing below 0.0540 during the trading day, the trade setup will become void and the bullish structure lost. Overall, the scenario can be described as a continuation setup.
IOTA Price Faces Short-Term Bearish Pressure
Despite the bullish price setup, the IOTA price encountered a quick reversal after a brief rally witnessed in mid-May.
According to TradingView, the IOTA price slid downwards from March, stabilizing at around $0.0540 in April before rising sharply to $0.0660. However, a wave of sell-offs forced a quick retracement back to $0.05604, below its 20-day SMA.
Source: TradingView
Technical indicators show a sharp fall in bullish momentum. The Bollinger Bands have expanded massively amid increased volatility, but the price action is moving towards the lower boundary.
Moreover, the MACD lines are turning down to form a bearish cross, while the histogram turns red to reflect that buying interest is now almost non-existent.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
Also Read: IOTA Price Stabilizes at $0.057: Is a Major Rally to $0.25 Coming Next?
