IOTAUSDT Breaks Key Support Amid Surging Bearish Volume

Summary
• Price declined from 0.0759 to 0.0705 over 24 hours, forming a bearish trend with key support at 0.0703.
• Volume spiked during sharp selloffs, confirming bearish momentum and a possible exhaustion phase.
• RSI entered oversold territory below 30, suggesting potential short-term rebound, but bearish bias remains intact.
• Bollinger Bands widened as volatility increased, with price hovering near the lower band during key declines.
• A bullish engulfing pattern emerged near 0.0705-0.0712, indicating a possible short-term reversal attempt.

IOTA/Tether (IOTAUSDT) opened at 0.0750 on February 6 at 12:00 ET, reached a high of 0.0765, and closed at 0.0705 on February 7 at 12:00 ET, with a low of 0.0697. Total volume was 13,311,293.0 units, and turnover amounted to $964,469.41 during the 24-hour window.

Structure & Formations

The 24-hour OHLC data reveals a clear bearish bias, with price falling below key support levels like 0.0734 and 0.0725 before consolidating near 0.0705. A bullish engulfing pattern formed between 0.0703 and 0.0712 on the 5-minute chart, suggesting a potential short-term bounce. However, the larger structure shows a descending triangle formation from 0.0765 to 0.0697, which may continue to pressure the pair.

Moving Averages

On the 5-minute chart, the 20-period and 50-period moving averages are in a bearish crossover, reinforcing the downward trend. On the daily chart, the 50/100/200-period averages suggest that IOTA is trading below its 200-day average, indicating long-term bearish sentiment.

Momentum Indicators

The RSI has dipped into oversold territory (below 30), signaling potential for a short-term rebound, although the bearish divergence between price and momentum suggests caution. The MACD remains negative, with the histogram expanding during key selloffs, indicating strong bearish momentum.

Bollinger Bands

Bollinger Bands have widened as volatility increased during the selloffs, with price frequently testing the lower band, especially between 0.0703 and 0.0706. This suggests that volatility is high and that the market may struggle to find a bottom in the near term.

Volume and Turnover

Volume surged during the sharp decline from 0.0752 to 0.0719, with the largest 5-minute turnover spike occurring at 16:15 ET with $331,972.78 in turnover. This confirms the strength of the bearish move. However, volume has since tailed off, hinting that the short-term selling pressure may be easing.

Fibonacci Retracements

On the 5-minute chart, the 38.2% and 61.8% Fibonacci retracement levels correspond with key price consolidations near 0.0735 and 0.0705, respectively. These levels may offer support or resistance as the pair moves forward. On the daily chart, the 61.8% level at 0.0703 has shown initial support, which could be critical for a reversal.

IOTA may test 0.0703 as a near-term support level, but a break below this could trigger further declines toward 0.0695. Investors should remain cautious for potential volatility and sharp retracements, particularly if volume increases on a bullish move.