- IOTS token lands prestigious Japan’s FSA approval highlighting tremendous progress in three years.
- IOST/USD recovery hits a barrier at $0.0070 as social media volume tumbles from incredible highs.
- IOST/USD could enter into consolidation before a breakout above the 100 SMA comes into the picture.
IOStoken (IOST) quickly became a discussion topic this week following its majestic rise despite the downfall witnessed across the cryptocurrency universe. The token rallied over 50% in less than 24 hours from support established at $0.0045 to weekly highs of $0.0075. Unfortunately, $0.0075 marked the end of the rally as buying pressure started to lose traction. IOST is currently trading at $0.0064 after conforming short term support at $0.0060.
IOST/USD 4-hour chart
IOST becomes the 14th FSA compliant token on Coincheck
The news of IOST token listing on Japan-based Coincheck is likely to have spurred investor interest because it was not just an ordinary listing but also a testament of the protocol's advancement. IOST is currently an approved cryptoasset by Japan’s Financial Service Agency (FSA) and the Trading platforms supervision Alliance.
On Coincheck exchange, IOST token is the 14th token to achieve compliance while in the entire Japanese market, it comes in the 29th position. IOStoken has since its partnership with Crypto Times, local but renowned media in Japan walked through both major and minor milestones. The goal of the alliance was to gain a local audience and build a community around it. The report is nothing but a success story with the Coincheck listing crowning it all three years later.
It is essential to note that, in addition to the above news, the development team released version 3.3.6 of the network, which mainly focuses on fixing a reported memory-related issue. According to a recently published bi-weekly report, the team has also revised the “DeFi related development plans” and started a program to support “community developers.”
IOStoken sparks fresh social media interest
According to data collected and analyzed by LunarCrush, IOST gained tremendously regarding social media mentions from September. Note that the token started trading on Coincheck on September 2, and by September, hit a social volume score of 79, attracting more than 2,400 tweets in one week. At the time of writing, the social volume indicator has fallen to ten, but interestingly, the price has remained relatively higher.
Increased social volume is not exactly an indicator of a sustainable uptrend. However, the mentions on various social media platforms tend to give the token a short-lived pump to a higher price level. It is reflected in IOST’s token barrier at $0.0070 as social volume hit a high at 79. With the social volume currently at ten and the price trading at $0.0064, there is a big chance of the trend building momentum again based on the technical levels and the on-chain metrics.
IOStoken technical analysis
The 4-hour chart maps out the tremendous progress IOStoken has made since the crash to $0.001363 in March 2020. The most significant resistance at $0.0070 was shattered towards the end of August. IOST/USD traded closer to the levels in February ($0.0086) but only managed to break marginally above $0.0080. The drop from August highs hit pause at $0.0045 after falling below a multi-month trendline.
IOST/USD daily chart
Recovery from the dip appears to have stalled with $0.0064 functioning as short term support. Meanwhile, the Relative Strength Index (RSI) hit a barrier at 54, leading to an ongoing reversal to the midline. If the RSI holds above 50, consolidation is likely to take over before the token resumes the uptrend. According to the moving averages (50 and 100 Simple Moving Average), the token is somewhat in the bulls' hands. Unfortunately, the volume is not big enough to support the uptrend, hence the stalling.
IOST/USD weekly chart
On the other hand, the weekly chart highlights the consolidation between the 50 SMA and the 100 SMA. IOST stayed in between the moving averages since June. Attempts to break above the 100 SMA resistance have not been successful. Subsequently, support at the 50 SMA has remained intact. The RSI confirms an uptrend in the longer frame. Therefore, a break above the 100 SMA could majestically boost IOST above $0.01 by the end of the year.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.