IO Price Stagnates Near $1.70: Can It Plot a Reversal Amid Downturn?

IO.net, (IO) a Solana based DePIN platform, saw a significant price decline following the market bearish movement in the past few weeks. Trading at a discount of over 72% from its 52 week high, the token underwent a major decline last month.

Recently launched token failed to attain follow on gains after the initial bullish moves on the day of listing and have continued to retrace till now. Correcting over 72% and slipped below the significant moving averages, the token was redirecting the bearish sentiments and traded in the negative trajectory.

Following the market correction, IO exhibited an extended correction phase. It is expected to head for the $1.30 mark, which is only 30% far from the current price level.

However, this week, the IO paused and represented a tight range bound movement and significant accumulation was noted.

At press time, IO token was trading at $1.78, up by 0.67%, displaying flat movement on the intraday chart. Its trading volume dropped over 32.90% representing the lower buying interest.

Notably, it was ranked at 220 with a market cap of $167.65 Million, with a total supply of 800 Million.

IO Price Action and On-Chain Metrics Outlook

On the daily chart, IO token exhibited a one way selloff and corrected over 70% last month. Amidst the market selloff, the token faced bearish moves and traded under bearish influence.

Moreover, the momentum indicator RSI curve is in the oversold region, having a reading of 33. It displayed a negative divergence on the chart, conveying the bearish stance.

Per the Fib retracement levels, the token has dragged to the make or break region around the $1.60 mark. Down there, it can dive toward its 23.6% zone around the $1.45 mark.

Weighted Sentiment and Volatility Data Overview

Despite the token’s underperformance, the weighted sentiment data highlighted a spike over 8% and noted an anticipation of a reversal. This significant shift means that investors have begun to chatter about IO and are waiting for a bounce.

Notably, the price volatility curve remained flat at around 0.021, highlighting mixed movements and flat movements.

@AltCryptoTalk in his tweet mentioned that, IO token was trading inside a falling channel and reached the lower support zone. A bounceback is anticipated.

$IO – @ionet

Built on @solana 💪

AI Compute-as-a-Currency, powered by $IO™ Internet of GPUs™

As #IO approaches the $1 round number and the lower bound of the channel, it would enter a massively oversold zone where we have an edge to look for buy setups.

For now, we wait!… pic.twitter.com/kIK9yKt75q

— AltCryptoTalk (@AltCryptoTalk) August 8, 2024

Based on the current price action, the token continued to form the lower low swings and traded inside a declining channel. IO bulls experienced a rejection from the 20 day EMA mark and pushed back below the $2 mark last week.

With the bearish momentum, the token has driven the underperformance and remained on the backfoot.

Futures Open Interest Data Noted a Downtick

Open Interest Data Source:Coinglass

The token’s Open Interest (OI) data noted a downtick over 7.89% and fell to $30.23 Million, signifying a short covering activity in the past 24 hours.

If IO succeeds in holding momentum near the $1.70 mark, it could trigger a recovery. Then, it might go toward the upside resistance zone of $1.85 and then $2 ahead.

On the other hand, if the token price fails to secure the $1.40 mark, a significant fall toward the $1.30 mark is likely.

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