IoTeX Bullish Hidden Divergence and Seasonal Pattern
IoTeX's (IOTX) price has generated bullish hidden divergence on its weekly chart and entered a strong seasonal bullish phase. This can be a sign of more gains ahead. However, the upside may also be capped near the $0.057 resistance level.
Bullish Hidden Divergence
The hidden divergence is similar to the classical divergence; however, the higher low occurs on the price chart instead of the oscillator.
In our case, IOTX made a higher low while the Relative Strength Index (RSI) oscillator made a lower low, breaking below the previous low momentum reading.
Additionally, in the short term, the RSI has started rising but is still below the 50 mid-level.
While the hidden divergence is a sign of trend continuation, we can't be too optimistic unless the RSI reclaims the 50 mid-level.
Seasonal Pattern
The month of July has historically been a strong month for IOTX. Last year, IOTX's price rallied over 840%, but we were during a strong bullish cycle.
In 2020, the cryptocurrency also experienced substantial gains of around 176% in July.
Looking forward: The upside can be capped at around the $0.057 resistance level, while on the downside, the $0.012 – which was the 2020 high and the 2021 low.
This makes it a key support level that has the potential to hold any further sell-off.
