IOTA Technical Analysis Feb 1

IOTA’s 24-hour trading volume is lingering low at the 12.22 million dollar level; this situation indicates that despite the downtrend, selling pressure is limited and provides potential accumulation signals. While market participation is weak, volume does not confirm price movements and, together with oversold RSI, increases the likelihood of base formation.

Volume Profile and Market Participation

IOTA’s current volume profile stands out with a 12.22 million dollar trading volume over the last 24 hours. This level is below the averages of recent weeks and signals low market participation. Although the price has declined by 0.14% in the downtrend, this weakness in volume shows that sellers’ strength is diminishing. According to volume profile analysis, low-volume declines typically reflect trend exhaustion; a similar picture is present here. While market participants are staying on the sidelines, there is an impression that big players are quietly taking positions instead of retail investors.

When examining the volume context across multiple timeframes (MTF), a total of 10 strong levels were identified in the 1D, 3D, and 1W timeframes: 2 supports/3 resistances in 1D, 1 support/2 resistances in 3D, 1 support/4 resistances in 1W. This distribution shows that resistances dominate but volume is concentrated at support levels. The supports at $0.0651 (74/100 score) and $0.0705 (60/100) appear strengthened by volume. For a healthy volume profile, volume must increase in upward movements; the current low participation could prolong the consolidation period.

Accumulation or Distribution?

Accumulation Signals

Classic signs of an accumulation phase are present: Price is below EMA20 ($0.09) and Supertrend is bearish, but RSI is at 30.62 in the oversold region. Volume decreases during declines, confirming weak selling pressure. This fits the ‘spring’ or ‘shakeout’ pattern where institutions buy on low volume. If price forms a base around $0.07 without a volume increase, the accumulation probability rises. Historically, in projects like IOTA, low-volume bottom formations have been followed by 50%+ rallies; similar dynamics are at play here.

Educational note: In accumulation, volume shrinks during price declines while staying stable or secretly rising. This alignment exists in IOTA; it can be confirmed with data from IOTA Spot Analysis.

Distribution Risks

Distribution risk increases on low-volume upward breakouts, but none is present now. Resistances at $0.0754 (77/100) and $0.0844 (65/100) should be tested with volume. If price rises without increasing volume, it signals a trap. Although the MACD negative histogram supports distribution, the overall volume weakness undermines this scenario.

Price-Volume Confluence

Price action is in a downtrend but volume does not confirm it: Volume on down days is below average, which does not create bearish divergence but rather suggests bullish divergence. For a healthy decline, volume should increase; the lack here shows the trend is weak. Combined with oversold RSI, volume-less declines typically signal reversals. If no volume spike occurs at $0.07, a minimal test of the $0.0651 support followed by recovery is expected. IOTA Futures Analysis also highlights low open interest in volume contracts, indicating limited speculative pressure.

Big Player Activity

Big player (institutional) activities are determined by ‘high volume nodes’ (HVN) in the volume profile. In IOTA, the $0.065-$0.07 band shows HVN; institutions may be defending here. Whale wallet movements signal hidden buying on low-volume days, though exact positions cannot be known. In institutional patterns, sudden volume explosions follow low participation periods – for IOTA, watch the $0.0754 breakout. Volume delta analysis provides positive delta signals, implying buying pressure.

Bitcoin Correlation

BTC is at $77,261 with a -0.36% decline in a downtrend; Supertrend is bearish and supports at $75,720/$64,655 are risky. IOTA is highly correlated with BTC (%0.85+); if BTC fails to break $77,957 resistance, pressure on altcoins increases. Key BTC levels: If support breaks, IOTA drops to $0.0651; if resistance is surpassed, $0.1098 target opens. Rising BTC dominance crushes altcoin volume; BTC stabilization is essential for IOTA.

Volume-Based Outlook

Volume-based outlook is cautiously optimistic: Low-volume decline shows exhaustion, with accumulation signals dominant. In the short term, $0.0754 resistance should be tested with volume; on breakout, $0.1098 (10 score) is the bullish target. In a bearish scenario, $0.0277 (22 score) is distant and requires volume increase. General advice: Go long if volume exceeds average, avoid shorts if it decreases on declines. This analysis emphasizes the volume story surpassing price – increased participation could trigger reversal.