$IOST Massive Short Liquidation at $0.004045 – Is the Trend About to Flip?
A sudden short liquidation worth $5,015.1 at the price of $0.004045 has ignited fresh curiosity among traders. This move hints that bears are starting to lose control, and a potential reversal could be in play. Here's a complete breakdown and trading strategy based on this development:
Technical Analysis:
1. Price Action:
$IOST recently bounced from a critical support near $0.00390–0.00400, where heavy short liquidations have occurred. This area is now acting as a demand zone.
2. Volume Spike:
The liquidation was accompanied by a noticeable spike in volume, suggesting strong buying interest at lower levels.
3. Market Sentiment:
The forced closing of short positions suggests that sellers were caught off-guard. This often marks the beginning of a short-term trend reversal or relief rally.
Trade Setup:
Buy Zone:
Accumulation range between $0.00394 – $0.00406
Target Levels:
Target 1: $0.00425
Target 2: $0.00445
Target 3: $0.00470 (major resistance and profit booking zone)
Stop Loss:
A clean break below $0.00389 on strong volume would invalidate the setup.
Strategy Note:
This setup is ideal for short-term swing traders looking to capitalize on forced seller exits. However, maintaining discipline with the stop loss is essential. If the price closes below the support, it could trigger a deeper correction.
Conclusion:
The $5K+ short liquidation at $0.004045 may serve as the ignition point for a new bullish leg in $IOST . Keep an eye on volume and price structure — a quick retest of the liquidation zone could offer the perfect low-risk entry.