IoTeX/Yen (IOTXJPY) Market Overview for 24 Hours Ending 2025-10-07

• IOTXJPY opened at 3.63 and traded between 3.507 and 3.692, closing at 3.636 with bearish consolidation in late hours.
• Momentum weakened as RSI fell below 50 and MACD turned negative, suggesting near-term bearish bias.
• Volatility expanded midday with a sharp drop to 3.507, followed by a rebound above 3.61; volume surged during the selloff.
• Bollinger Bands widened during the 3.507–3.592 rebound, while Fibonacci 50% and 61.8% levels provided partial resistance.
• Turnover spiked during the selloff and the rebound but failed to confirm a strong reversal, indicating potential indecision.

24-Hour Price Action and Turnover

The IOTXJPY pair opened at 3.63 at 12:00 ET–1 and reached an intraday high of 3.692 before retreating to 3.507, its lowest point of the period. It closed at 3.636 at 12:00 ET, reflecting a volatile session. Total volume for the 24-hour window was 1,686,398.0 IOTX, with a notional turnover of approximately ¥5,522,754.00. The price action displayed a broad range and a bearish close, indicating caution in the market.

Structure and Key Levels

The price structure revealed multiple key support and resistance levels. A notable support level emerged at 3.507 after a sharp drop around 15:00 ET, which coincided with the lowest point of the day. The 3.61 and 3.63 levels showed repeated rejections, suggesting that these areas may serve as short-term resistances. A doji candle formed around 06:00 ET, hinting at indecision and a potential reversal if confirmed by higher volume.

Volatility and Bollinger Bands

Volatility spiked as the pair dropped to 3.507 and rebounded back above 3.61. Bollinger Bands widened during the rebound, with the price closing near the upper band, indicating a potential exhaustion of the bullish move. The narrowing bands earlier in the day suggested a period of consolidation before the sharp break, which may hint at a continuation of the downward trend if the next move fails to clear key resistance.

Technical Indicators and Momentum

The RSI moved below 50, signaling weakening momentum, and the MACD turned negative as bearish momentum gained control. A bearish crossover occurred between the 20- and 50-period moving averages on the 15-minute chart, reinforcing the likelihood of further declines. The 50- and 100-period moving averages on the daily chart also crossed, indicating a potential shift in trend. These indicators suggest that the pair may remain in bearish territory in the short term unless it reclaims key resistance levels.

Backtest Hypothesis

A potential backtesting strategy could involve a mean reversion approach using Bollinger Bands and RSI to identify overextended price movements. A trade entry might occur when the price touches the lower Bollinger Band and RSI falls below 30, with a target near the middle band and a stop loss below the 20-period moving average. This setup could be tested for its effectiveness in the current volatile environment.