By Chris Hollingworth 
Weekly Price Analysis is a feature where our readers have the opportunity to select which cryptocurrency will be examined. Be sure to stay connected with our social media channels to participate in the next survey.
The opinions and viewpoints expressed in this article are those of the author alone and do not necessarily represent the stance of Cointelegraph.com. Every investment and trading decision carries inherent risks, and it is advisable to conduct thorough research before making any financial commitments.
Market data utilized in this analysis is sourced from the HitBTC exchange.
IOTA currently ranks as the tenth largest cryptocurrency based on market capitalization. While several coins in the top 10 are striving to recover from recent downturns, IOTA is facing challenges in its price performance.
An ongoing dispute between the IOTA team and a group of external security researchers has added to the pressure. Some critics suggest that the handling of the situation by the IOTA founder and team was less than professional, casting doubt on the team’s ability to advance the project. Despite this, IOTA’s price has not plummeted significantly, indicating that investors have not completely lost faith in the team.
Let’s delve into the technical analysis of the IOTA/USD pair.
### Weekly Chart
IOTA traded within a range from mid-June to mid-November of the previous year. The cryptocurrency witnessed a remarkable rally from early November to early December, surging from a low of $0.33870 to a high of $5.59, representing a substantial 1550 percent gain in just five weeks.
Following the rally, the cryptocurrency maintained volatility but remained range-bound near the peak levels for five weeks. Eventually, it broke below the range and dropped to a low of $1.2 in early February. Presently, the market is in the fourth week of consolidation near these lower levels.
Given that the prior consolidation lasted only five weeks, and with other cryptocurrencies showing signs of a rebound, is an upward movement in the IOTA/USD pair on the horizon?
### Daily Chart
IOTA is striving to hold the 78.6 percent retracement level of the entire rally from $0.33870 to $5.8. Since February 2nd of this year, the cryptocurrency has primarily traded within a range of $1.5 to $2.2117.
Moreover, a symmetrical triangle pattern has formed at the lows, indicating a potential breakout.
Although the moving averages are trending downwards, IOTA has managed to rise above the 20-day EMA, with the 50-day SMA positioned near the upper range boundary at $2.2418.
In the event of a breakout and a close (UTC) above the range, the pattern suggests a target of $2.9234. Notably, a key resistance level stands at $3, with minor resistance at $2.62.
Conversely, a breakdown and closure below the range could lead to a target of $0.7883, while the support zone between $1.1 to $1.2 is likely to attract buying interest.
So, what should traders consider?
Within the current range, no specific trade setups are evident. However, once the price breaks out and closes above $2.23, long positions could be initiated with a suitable stop loss. If the bulls successfully breach the $3 resistance, a potential rally to $4 may materialize. Traders are advised to refrain from attempting bottom fishing if the cryptocurrency falls below the range boundaries.
Market data utilized in this analysis is sourced from the HitBTC exchange, with charts provided by TradingView.
