On Tuesday, MIOTA had a fantastic session, surging more than 20% on the day. According to Investing.com, MIOTA is the native token of an open-source distributed ledger that records and executes transactions between computers and devices in the Internet of Things (IoT) ecosystem.
IOTA/USD gained support slightly above $1.0 per token, broke to the north of its 21-day moving average at $1.17. Then climbed past $1.30 to its highest level since the beginning of the month. The cryptocurrency has already fallen below $1.30. Although it is still trading above a crucial level of short-term support at $1.24. It is also close to its 50-day moving average of $1.28.
On Tuesday, a wide surge across cryptocurrency markets saw altcoins like MIOTA thrive. It raised optimism for a long-awaited “Santa rally”. Three days before Christmas, MIOTA is still down approximately 15% for the month. However, traders in the altcoin market will be well aware that a 15% shift in three sessions is possible.
MIOTA has the potential to achieve highs in 2022
Short-term bullish speculators will be expecting that the MIOTA can maintain yesterday’s momentum. Then, push higher towards the top of the recent multi-month range in the $1.66-$1.76 level. Now that it has broken over important short-term resistance. As a result, they may require near-term consolidation before the cryptocurrency continues.
Short-term bulls, on the other hand, should be wary that short-term momentum indicators indicate that MIOTA has reached overbought territory. On Tuesday, the four-hour candlesticks’ 14-period Relative Strength Index (RSI) surged close to 80.00. Well over the 70.00 mark that indicates overbought conditions.
As a result, they might require some near-term consolidation before the cryptocurrency can continue.
A 30% climb to the top of current multi-month ranges between $1.66 and $1.76 would still leave MIOTA roughly 40% behind annual highs in the $2.70 level. And those annual highs are still around 60% lower than the all-time highs of $6.50 set in 2018.
If MIOTA is to achieve new highs in 2022, it will have a long way to go.
If MIOTA can manage a bullish breakout above this pennant, it might at the very least lead to a test of annual highs. Also, if these go along with a wave of buying activity, we could be looking at a repeat of record levels.
In the latter half of 2021, the metaverse was a significant crypto story. Decentraland’s MANA and Sandbox’s SAND reaching new highs. Perhaps by 2022, people will have a renewed interest in the Internet of Things. Also, its potential to improve augmented reality projects.