is making waves in the cryptocurrency realm again owing to its recent price performances. In fact, since the beginning of November 2024, the token has soared by more than 250%, alongside other major cryptocurrencies across the market.
With significant upside momentum on its side, IOTA broke out of its prolonged descending trendline. By doing so, it gained significant attention from both whales and traders.AMBCrypto’s technical analysis revealed that following the breakout of the trendline, IOTA appeared to to be struggling near the strong resistance level at $0.36. In addition to the horizontal resistance level, the 200 Exponential Moving Average was also acting as a resistance at press time.
Meanwhile, IOTA’s Relative Strength Index alluded to a potential price correction or decline in the coming days as the asset was in overbought territory.However, this breakout won’t be easy for the altcoin, as exchanges across the cryptocurrency landscape are witnessing notable inflows. This, according to the on-chain analytics firm Coinglass.According to IOTA’s spot inflow/outflow data, exchanges recorded a significant inflow of $3.81 million in the last 24 hours.
In the finance industry, inflows to exchanges are often referred to as indicators of market sell-offs and potential price drops.In addition to the participation of whales, traders appeared to be building short positions, as indicated by IOTA’s Long/Short ratio which had a reading of 0.88. A ratio below 1 signifies strong bearish sentiment among traders. At the time of writing, 53.20% of top traders held short positions while 46.80% held long positions.
This combination of on-chain metrics and technical analysis suggested that traders and investors may be shifting their position towards the bearish side.near $0.34, having recorded a 15% price decline in the last 24 hours. Over the same period, its trading volume surged by 200%, indicating strong participation from traders and investors amid its recent breakout.Chanakya G is an analyst with 4 years of experience looking at the crypto-markets.