IOTA has seen losses in the past few days, but the bulls have managed to hold key support level of $ 0.550.
The cryptocurrency market has held its position for the past 24 hours. Bitcoin fell below $ 30,000 on Tuesday and has held above the $ 29,000 region for the past 24 hours.
However, other cryptocurrencies saw losses, with IOTA’s value falling nearly 4% in the past 24 hours. It was able to defend the large support level at $ 0.550, but a further decline in Bitcoin and the broader market could result in IOTA’s price dropping.
Overall market sentiment still remains bearish, with some analysts expecting Bitcoin to test the $ 24,000 level at some point in the future.
IOTA price outlook
The IOTA / USD 4-hour chart is in bearish territory after the cryptocurrency lost around 4% of its value in the past 24 hours. IOTA hit a daily high of $ 0.6148, but the performance of the broader cryptocurrency market caused it to lose momentum and begin to decline.
The decline caused the IOTA / USD pair to slide into the 0.575 region. However, the bulls were able to defend the support level at USD 0.550 and IOTA is now trading above USD 0.580 again.
IOTA / USD chart. Source: Coinalyze
If the recovery trend continues, IOTA’s price could beat the 24-hour high of $ 0.6148 and target the 100-day simple moving average at $ 0.6532. However, it would take the support of the broader crypto market to surpass this level.
On the flip side, IOTA could lose the $ 0.550 support level as the market is still in a bearish cycle, bringing the second major support point at $ 0.500 into focus. Unless there is an extensive market sell-off, IOTA should be able to comfortably defend the $ 0.500 level.