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.

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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.