$IOTA — Descending wedge… and a breakout may be imminent
$IOTA is now within a narrowing range after a previous drop, and this type of consolidation is usually a sign that selling has started to weaken.
The price is no longer declining with the same strength, and buyers have begun to gradually enter, which is evident from the decline in negative momentum.
The most important point here is the descending wedge pattern that is forming. This pattern often appears at the end of a downtrend or during a correction, and gives the impression that the market is "preparing" for a reversal.
What supports this scenario is the trading volume: during the consolidation period, the volume remains steady with no clear decline, which usually indicates accumulation by investors who expect a rise soon.
If the price clearly breaks the upper wedge resistance with strong volume, a strong upward movement is expected to begin. The rise after the breakout could be significant as it depends on the strength of the momentum at the breakout point.
Expected scenario:
- Selling retreat → Accumulation → Bullish breakout
- The upcoming movement could be fast and strong, especially if support continues with volume.
For traders watching the currency, this setup provides a good opportunity to enter before the market starts to move clearly.
If the breakout is confirmed with sustained trading volume, we may witness the beginning of a new upward wave in the medium term.
