IOST Resumes Climbing After Initial Rejection by Resistance

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In Brief
  • IOST has minor resistance and support at $0.0214 and $0.0184 respectively.

  • IOST is likely nearing the top of an extended wave three.

  • Technical indicators are bullish for IOST/USD but bearish for IOST/BTC.

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The IOST (IOST) price has reclaimed a long-term resistance area and looks ready to resume its climb to a new local high.



Technical indicators support this movement, and the rate of increase is likely to accelerate if IOST can clear $0.0214.

 

IOST Long-Term Resistance

The weekly chart shows that IOST has moved above the $0.016 area, which had been acting as resistance since late 2019. It validated this level as support in January 2020 (green arrow), and began another upward movement.



If IOST continues to increase, the next closest resistance area would be found near $0.03.

Technical indicators are bullish, supporting the continuation of the upward move.

IOST Chart By TradingView

Current Movement

Cryptocurrency trader @CryptoNewton outlined a chart, stating that they are expecting IOST to move towards $0.028.

Source: Twitter

The six-hour chart supports this possibility as it shows a breakout above the minor $0.0184 resistance area and its validation as support.

If IOST manages to clear the $0.0214 resistance area (0.618 Fib retracement level), it’s likely to move upwards at an accelerated rate and proceed to reach the previously outlined $0.03 resistance area.

IOST Chart By TradingView

Wave Count

The wave count suggests that IOST is in wave three (white) of a bullish impulse that began in March 2020.

The sub-wave count is given in orange, indicating that IOST is in sub-wave five.

The most likely target for the top of the movement is found between $0.0354-$0.0359. This target range was found by using a Fib projection on sub-waves 1-3 and an external Fib retracement on sub-wave four.

IOST Chart By TradingView

IOST/BTC

On Jan. 8, IOST/BTC reached an all-time low price of 15 satoshis. It immediately followed the low with a rapid upward movement (highlighted in green), reaching 73 satoshis on Jan. 15.

IOST has been decreasing since, and indicators have turned bearish.

However, IOST is also trading between the 0.5-0.618 Fib retracement levels, a common zone to initiate a reversal.

In order for the upward move to continue, IOST has to create its first higher low, then confirm the upward movement by creating a higher high.

Until it does that, we cannot consider the trend bullish.

IOST Chart By TradingView

Conclusion

IOST is expected to move upwards at an accelerated rate once it manages to break out above the minor resistance area of $0.0214.

While IOST/BTC has possibly initiated an upward move, there is no bullish structure in place until a higher low is created.

For BeInCrypto’s latest Bitcoin (BTC) analysis, click here

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
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Valdrin is a cryptocurrency enthusiast and financial trader. After obtaining a masters degree in Financial Markets at the Barcelona Graduate School of Economics he began working at the Ministry of Economic Development in his native country of Kosovo. In 2019, he decided to focus full-time on cryptocurrencies and trading.

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