As the Ethereum price neared an all-time high, traders focused their attention on one of their competitors, IOST. In the bullish environment, traders often buy the rumor of an upcoming announcement and this seems to have happened with the IOST.
The Cause of the Ascension
IOST co-founder Terrence Wang is making forward-looking announcements about an IOST-based stablecoin, DeFi integration, and major partnerships.
Each of these announcements may have played a role in increasing traders’ interest.
Recently, XPET’s 2D Game “Dream Monster” was released on the IOST blockchain. Players can store and exchange game essential assets such as rare pets, equipment, genetic traits, traits, and much more in the form of NFTs in the IOST chain.
Focusing of IOST on decentralized financial ecosystem and NFTs can keep investors connected. The project also recently received an award for “2020 Most Influential Public Chain” and “2020 Best Blockchain Companies” from Chinese blockchain media company Jinse. While these are likely emotionally boosters, a closer look at the techniques of the IOST will determine if there is room for the rally to work more or if there is a fix.
IOST rose from an intraday low of $ 0.005734 on January 6 to $ 0.013545 on January 9, which means a 136% rally in four days.
The break and close above $ 0.009 completed the rising triangle pattern with a target of $ 0.016.
The IOST / USD pair fell to $ 0.008 on January 11, but the bulls bought this drop aggressively, causing the hammer candlestick pattern to form.
Today, the bulls tried to restart the upward movement, but traders seem to be taking profits from higher levels, resulting in the formation of a leggy Doji candlestick pattern.
The pair could consolidate between $ 0.009 and $ 0.012 for the next few days as both the bulls and bears try to dominate. If the bulls manage to keep the price above $ 0.012, the next leg of the upward move could reach $ 0.016 and then $ 0.018.
This bullish outlook could be invalidated if the price breaks below $ 0.009 and continues. Such a move will show that the current breakout is a bull trap.