IoTeX stuck in a profit reservation loop; Will IOTX start an uptrend?

IoTeX is not your usual blockchain offering a multitude of digital services. On the contrary, he realizes the perception that blockchain can transform the way machines interact with each other. Simply put, IoTeX enables blockchain technology to run on your machines and is not just limited to software. It is one of the few blockchain technologies that one can easily integrate into one’s personal life.

In today’s timeline where installing door cameras, smart cameras, laptops, interconnected refrigerators and air conditioners is an easy thing; hackers can easily hack into your WiFi network and gain access to these digital machines. This marks a major question about what can be done to prevent hacking of IoT devices and has become the central topic of the IoTeX blockchain.

IoTeX uses a Proof of Stake delegated validation mechanism and even invented proof of presence for its Pebble product. Originally developed as an ERC-20 token in 2017, it developed its blockchain in 2018 and included features such as staking.

The IOTX token currently has a market cap of $317,788,723 with a supply of 9.54 billion tokens. IOTX hit its all-time high of $0.2611 in November 2021 and is currently trading at an 87% discount to that value. The growth of the IoT ecosystem will greatly benefit this blockchain and its growth prospects.

After surging significantly from its June 2022 lows, IoTeX could not escape the realm of profit booking. This week’s sudden jump has already been lost to profit booking by buyers who entered at lower valuations.

IOTX’s price action indicates price consolidation action that was unable to reach the first rejection level of May 2022. As such, the buyers are not allowing prices to reach resistance areas due to a profit-booking mindset.

RSI levels have risen from oversold areas of 20 in May 2022, it has now entered a level of 59, but the impact of this buying sentiment is not reflected in the price action. The MACD line and the Signal line have been trading nearby since mid-May. All of these aspects highlight the critical element of higher buys despite lower price increases.

With the current rally having created upper wicks on July 19, it became apparent that a sell zone has turned into resistance. The same obvious fact was confirmed on July 20, but the formation of three upside candles signified a negative position. If the July 21st price action could close the candle above the previous day’s open value, the candlesticks would indicate a buy scenario.

The RSI indicator has turned sideways for the day, and the direction of its continuation combined with the breakout of the $0.3652 level will ensure a positive rally. Failure to mark such a bullish position could force IOTX to enter a profit booking scenario with a higher probability of testing the immediate support level at $0.2300.