Hello traders! In this analysis, I would like to bring your attention to one of the low cap coins, which is IOST. Currently, it is ranked #108 on the coin market cap with a total capitalization of $42,786,047 USD.
What is interesting about IOST is that like any other low cap coin, it could potentially provide above-average returns in a bull market. So let’s try to understand whether IOST is attempting to reverse or simply undergoing yet another upside correction. Another point is that price has found strong support near $0.003 psychological level. This level has been cleanly rejected back on April 13. Since then there were several attempts to break lower, although all of them failed.
IOST continues to move within the ascending channel after breaking agave the downtrend trendline and reacting 38.2% Fibonacci retracement level. Recently, on May 10, the price went down, bounced off the lower trendline of the channel, and the Fibonacci support.
Clearly, the price has started to print lower lows and lower highs, which eventually might initiate a strong uptrend. But this scenario can only be considered if IOST/USDT will remain above the $0.003 support. In this case, the price will be aiming for one of the nearest resistance levels. First is 38.2% Fibs at $0.004 and the second is 50% at $0.0048. Perhaps the next key psychological resistance will be located at $0.005 which almost corresponds to the second upside target. If this level will be broken, IOST will have good chances to establish a long term uptrend, because such price action will result in a daily breakout of the 200 Exponential Moving Average.
Bias: Bullish while above $0.003
Potential Support Zone: $0.0033 – 0.0034
Potential Targets: $0.0040, $ 0.0048
Have a profitable trading!