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