IOST Can’t Leave the Consolidation Range

In the previous IOST price analysis, we predicted with surgical accuracy the price target at $0.009 on the weekly time, which followed the breakout of a multi-month resistance. 

Prediction chart

Further price development

Heading towards the bottom of the range

Kudos, if you followed our advice and offloaded the position at the established price target, but now the time has come to forecast the future developments in this market. But first, let’s review its performance over the past several months. On the yearly scale, IOST still proves itself as a profitable asset since it’s 23% in the green against USD, though it’s all-time ROI is down to -75%.

The coin that represents the blockchain network run on the Proof-of-Believability consensus algorithm had a comparatively good month as its USD value fell only by 11.8%, whereas many other altcoins from outside the top 100 crashed by 50+%; IOST lost to Bitcoin by 6.2% and to Ethereum by 3.3% over the same period of time.

IOST is currently priced at $0.0058 as the result of the 2.15% drop in the last 24 hours, though it had a small 4.6% bump to the upside during the week. The coins market capitalization remains relatively stable, revolving around $90 million, despite the recent turmoil on the cryptocurrency market. We have noticed a substantial drop in average trading volume over the past 30 days from $120 million to $30 million, which might hint at the consolidation mode IOST is about to enter.   

Year-to -date IOST chart

The chart above shows a tough multi-month resistance at $0.8, which IOST failed to breach on three separate occasions - the second one being in March that led to a massive crash to the all-time low at $0.0015, from which the price initiated a slow but steady recovery.

The last retracement, which has already slashed its value by 37%, happened upon IOST reaching the said price target, but the analysis of action on the weekly time frame suggests that the coin mightn’t have fully immersed in the bearish waters, which means that further price fall is to be expected.

1-week IOST/USDT chart

• Following the four months of bullish action, which translated to the protracted green histogram, MACD starts finding the balance through the growing selling pressure, which, in its turn, has drawn the MAs on the brink of bearish crossover. If the crossover is to occur, the fall to the pre-designated support levels will be inevitable. 
• The Accumulation/Distribution indicator is heading south strongly, creating a hidden bearish divergence, which points at the high possibility of a further price drop as the selling volume has apparently kicked up a gear.  
• The notion regarding the approaching period of consolidation upon the slightly deeper retracement is supported by the behavior of Bollinger Bands, which begin to form a squeeze that always leads to the shrinkage of the range of price action. IOST is likely to get dragged to the lower band that coincides with the $0.0044.

Key price levels to watch

• $0.0044 - the expected support level during the consolidation period that has proven viable for many months;
• $0.0033 - the support area that will come into play in case of a deeper retracement;
• $0.0088 - the price target if IOST bounces off the middle line of BB to the upside.

Author: Alex Paulson for Crypto-Rating.com