IOTA has recorded losses over the past few days, but the bulls have been able to defend the $0.550 major support level.
The cryptocurrency market has been able to maintain its position over the past 24 hours. Bitcoin dropped below $30k on Tuesday and has been able to stay above the $29k region for the past 24 hours.
However, other cryptocurrencies recorded losses, with IOTA’s value down by nearly 4% in the past 24 hours. It has been able to defend the major support level at $0.550, but another dip in Bitcoin and the broader market could see IOTA’s price decline.
The general sentiment of the market still remains bearish, with some analysts expecting Bitcoin to test the $24k level sometime in the future.
IOTA price outlook
IOTA/USD 4-hour chart is in bearish territory after the cryptocurrency lost roughly 4% of its value in the past 24 hours. IOTA reached a daily high of $0.6148, but the performance of the broader cryptocurrency market saw it lose momentum and begin to record losses.
The decline saw the IOTA/USD pair slip to the 0.575 region. However, the bulls were able to defend the $0.550 support level, and IOTA is now trading above $0.580 again.
IOTA/USD chart. Source: Coinalyze
If the recovery trend continues, IOTA’s price could surpass the 24-hour high of $0.6148 and target the 100-day simple moving average at $0.6532. However, it would need the support of the broader crypto market to surpass that level.
On the flip side, since the market is still in a bearish cycle, IOTA could lose the $0.550 support level, bringing into sharp focus the second major support point at $0.500. Unless there is an extended market sell-off, IOTA should be able to defend the $0.500 level comfortably.