Disclaimer: The results of the following analysis are the sole opinion of the author and should not be considered as investment advice

In mid-January, IOTA plunged from $1.18 to $0.68 in a matter of days. Since those lows, it has quickly rallied back above support at $0.78. Bitcoin has been spiking in recent hours, and the token has used that momentum to climb above resistance at $0.94. The $1 round-number resistance level is very close. But in the days ahead, it looks like the price will climb above that level as well.

IOTA climbs on the K chart, but $1 may pose some difficulties

Source: IOTA/USDT on TradingView

After dropping to $0.69, the local low was formed when IOTA quickly moved back above the $0.78 support level. With IOTA breaking above the previous low of $0.84 and making a higher low just below $0.78, the recent market structure was transcended.

Despite the bearish long-term trend, IOTA has slowly but steadily climbed up the charts over the past two weeks. Fibonacci retracement levels are plotted based on IOTA's drop from $1.19 to $0.69. They show that IOTA has retraced a large part of this drop.

On the move up, the token has also seen an increase in purchases in recent days. This indicates that buyers are becoming more confident in the bullish performance of IOTA, which is a sign of strength.

Fundamentals

IOTA climbs on the K chart, but $1 may pose some difficulties

Source: IOTA/USDT on TradingView

MACD remains above the zero line, showing strong bullish momentum, although it appears to be on the verge of forming a bearish crossover. The strong demand behind the recent rally is reflected in the CDV. Over the past few days, the indicator has seen a strong rise.

Even as price made higher highs, the awesome oscillator made lower highs. This bearish divergence could lead to a price retreat in the coming days.

Conclusion

Bitcoin's break above $40,600 is a bullish development for the cryptocurrency market in the near term. The asset may face some selling pressure in the $0.94-$1 area. These are two long-term resistance levels where sellers could consider stepping in. The $1-$1.05 area has been one of the areas of strong demand in recent months. However, prices are on the verge of retesting from below. It may be a good idea to wait for the conflict between buyers and sellers to be resolved before riding the coattails of the winners.