IOTA Price Declines Despite Progress on Rebased Upgrade
IOTA’s price has dropped significantly this week, hitting a two-week low despite advancements in the Rebased upgrade, which adds new validators and features. Technical analysis shows a mini-death cross formation, signaling potential further declines. IOTA is also offering staking rewards between 10% and 15% APY, aiming to position itself competitively against other chains.
This week, IOTA’s price has exhibited a declining trend, hitting a low not seen in over two weeks, despite advancements made in the Rebased upgrade. The IOTA token plunged to a weekly low of $0.1743 on Monday amid a general downturn in the cryptocurrency market, including Bitcoin and other altcoins, but recovered to $0.2230 by Friday, reflecting a 30% increase from its lowest point.
Despite these price fluctuations, progress on the Rebased testnet continues. Developers have announced the onboarding of more validators, such as Stakefish, which manages over $3 billion in staked assets, along with other participants including Realize, Allnodes, InfraSingularity, and Keyring. These validators will play a crucial role in ensuring the security of the IOTA network once the Rebased upgrade transitions to the mainnet.
The Rebased upgrade promises to introduce significant enhancements, including a parallelized Ethereum Virtual Machine, MoveVM, full decentralization, and the ability to process up to 50,000 transactions per second, distinguishing IOTA from competitors like Solana, which handles less than 5,000 TPS. Furthermore, IOTA holders will be granted the opportunity to stake their tokens, potentially earning returns between 10% and 15% APY, which surpasses yields from US government bonds and staking yields from Ethereum and Sui.
From a technical standpoint, the daily chart indicates that the IOTA token reached a peak of $0.6293 in December but has since declined over 64%, approaching its lowest levels since November. The formation of a mini-death cross, characterized by the crossing of the 50-day and 100-day moving averages, suggests a potential for further price decreases.
Currently, IOTA’s price has slipped below the critical support level of $0.2530, marking its lowest value since December 20. The token is now at the 78.6% Fibonacci retracement level. Both the Relative Strength Index and MACD indicators show downward momentum, but they are not in oversold territory. Maintaining a price below the 50% retracement point at $0.30 could leave IOTA vulnerable to further declines, potentially revisiting last year’s low of $0.1035.
IOTA is a cryptocurrency that focuses on the Internet of Things (IoT) and aims to facilitate transactions between connected devices. The Rebased upgrade, an anticipated improvement for the IOTA network, is designed to enhance performance and transaction speed, positioning it as a competitor to other major blockchain platforms like Ethereum and Solana. Despite these technological advancements, IOTA’s price has struggled in the face of overall market trends and technical challenges.
In summary, IOTA’s price has faced downward pressure despite positive developments associated with the Rebased upgrade. The presence of new validators on the testnet signifies promising progress ahead. However, technical indicators and price movements suggest that further declines may be imminent if the market conditions do not improve. IOTA seeks to emerge as a strong competitor within the cryptocurrency landscape, but its recent performance raises concerns among investors.
Original Source: crypto.news
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