On December 3, Tuesday, IOTA price surged 60% on the back of a crucial network update. This massive rally is in line with the veterans like Ripple (XRP) and Stellar Lumens (XLM). With a huge spike in momentum, will IOTA copy XRP and hit $1 in the near future?
This CoinGape article explores if IOTA price will hit $1.
Why is IOTA Price Rallyin Today?
The IOTA token jumped to $0.5427, its highest level since May 2022. It is in its fifth consecutive week of gains, its longest winning trend since 2020.
This surge happened after the developers initiated a crucial vote for the upcoming Rebased upgrade. If this vote goes through, as most analysts expect, it will be a new beginning for IOTA, a network that has struggled to gain traction in the past few years.
Rebased introduces move smart contracts to IOTA, making it a better-distributed ledger network for developers to build applications. It also aims to have lightning fast speeds with up to 50,000 in transactions per second. If this is correct, IOTA will now become faster than popular blockchains like Ethereum and Solana.
Most importantly, for crypto investors, IOTA stakers will now earn between 10% and 15% APY for helping to secure the network.
By launching Rebased, the IOTA Foundation hopes that the network will attract more developers in areas like Decentralized Finance (DeFi), gaming, and NFTs.
IOTA Technical Analysis: Could It Jump To $1?
The IOTA price has formed strong technicals, pointing to more gains ahead. On the weekly chart, the coin has been in a consolidation mode for over two years. In this period, it struggled to move below the key support at $0.1341, where it formed a triple-bottom pattern whose neckline was at $0.4143.
A triple-bottom happens when an asset fails to drop below a certain price three times, signaling that bears are afraid of shorting it below it. In most periods, such a bottom is a highly popular reversal pattern.
IOTA price has now moved above the important resistance level at $0.4143. It has also jumped above the 50-week and 25-week moving averages. Therefore, the most likely scenario is where IOTA soars and hits the 23.6% Fibonacci Retracement level at $0.6300.
A move above that level will raise the possibility of the IOTA coin rising to $1, which is also slightly below the 38.2% retracement point. Hitting $1, as XRP price did, would point to a 70% increase from the current level.
Conversely, a drop below $0.4100, which is a few points below the double-top point at $0.4143.
Frequently Asked Questions (FAQs)
IOTA coin is soaring after the start of the Rebase vote. This vote will introduce more features to the network as it seeks to grow the ecosystem.
Yes. IOTA has strong fundamentals and technicals that could push it higher in the near term. Like XRP, there are rising odds that the coin will rise to $1.
IOTA faces an uphill task attracting developers, who are mostly focused on building on Ethereum and Solana.
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Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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