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After Failed Breakdown, IOST Reclaims Long-Term Support

2 mins
Updated by Ryan Smith
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In Brief

  • IOST has broken down from and reclaimed a long-term ascending support line.
  • The price is facing resistance at $0.0083 and $0.0105.
  • Technical indicators are bullish, supporting the possibility of a rally.
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On September 4, the IOST (IOST) price purportedly broke down from a long-term ascending support line.
However, reclaiming the same support line shortly after that was a definitive sign of strength, indicating that the price is likely to move upwards.

Deviation Below Long-Term Support

The IOST price has been following an ascending support line since March 13. On September 5, the price broke down from this support line, creating a low near $0.005. However, it reclaimed the line shortly afterward, making the decline just a deviation above support rather than an actual breakdown. The price reached a high of $0.0090 on September 13 but has been falling since. This move validated the $0.0083 area as resistance and left a very long upper wick in its wake. If the price successfully moves above this resistance area, it could increase all the way to $0.01.
IOST Long-Term SUpport
IOST Chart By TradingView
Technical indicators are bullish, though they do not confirm the possible breakout. The MACD is increasing and has crossed into positive territory, and the RSI has bounced at the 50 line. In addition, the stochastic oscillator has begun to turn upwards. However, there is no bullish divergence nor bullish cross that would support the possibility of a breakout.
IOST Bullish indicators
IOST Chart By TradingView

Possible Bounce

The short-term chart reveals another breakdown from an ascending support line. However, the price has bounced at the 0.5 Fib level and has possibly made a double bottom. Furthermore, technical indicators are bullish. There is bullish divergence on both the RSI and the MACD, while the stochastic oscillator is very close to making a bullish cross. These signal that the price will likely move upwards.
IOST Bullishness
IOST Chart By TradingView
The price may have completed a bullish impulsive five-wave formation. This is a good sign since it would mean that the trend is likely bullish. However, it would also increase the possibility of the previously mentioned price increase being the B wave of an A-B-C formation, which would eventually create a slightly lower low before the price would resume its upward movement.
IOST Wave Count
IOST Chart By TradingView

IOST/BTC

Cryptocurrency trader @mesawine1 outlined an IOST/BTC chart, stating that the price action looks akin to a long-term accumulation, which would be very bullish if the price broke out from the current range.
IOST Movement
Source: Twitter
Indeed, IOST/BTC has broken out from a descending resistance line and validated it as support afterward. If the price continues moving upwards, the closest resistance areas would be found at 120 and 315 satoshis. Technical indicators are bullish, supporting the possibility of a rally.
IOST/BTC
IOST Chart By TradingView
Top crypto platforms in the US | March 2024

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)
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