IOTA drops 6% as bulls struggle to hold above critical levels

The technical picture shows vulnerability. IOTA's rejection at $0.25 has emboldened bears. Price bars now sit below the short-term exponential moving averages, and traders see a clear threat that declines could push past $0.2201. The coin holds $0.22 as support, but a break there sends it into extended sideways chop below $0.25.

That recent spike above $0.25 pushed IOTA into overbought territory before the selling began. For buyers to recover ground, they need to drive price back above the moving averages and engineer a 50-day/200-day SMA crossover. The RSI is rising again, and the MACD has swung positive, both signs that demand could emerge at these lower price levels.

Support sits at $0.22. If buyers hold here, the next target comes at $0.26. Breaking that resistance puts $0.35 in view if the uptrend builds traction. Most traders expect more downside before a new advance takes shape.

Intel filed a patent that references IOTA's Tangle technology as a solution for improving data flow in connected vehicles. The application is V2X communication, a vehicle-to-anything system that lets cars broadcast across networks. If Tangle gains adoption in fog computing, it could shift the backdrop for IOTA. Right now the chart is ugly, but the underlying technology angle offers traders reason to watch.