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IOTA (IOTA), the Internet of Things-focused cryptocurrency, has traded sideways in recent days, holding steady at around $0.1670. Despite being far below last year’s high of $0.6375, the token is showing signs of a bullish reversal as it forms a rare falling wedge pattern—a technical indicator that typically precedes a breakout.
Analysts believe IOTA may be on the cusp of significant price movement as the network prepares for its highly anticipated Rebased upgrade. Though no official date has been announced, speculation points to a launch later this month.
The Rebased upgrade marks a major milestone for the IOTA ecosystem, transitioning the network into a fully decentralized Layer-1 blockchain. This shift will be powered by delegated proof-of-stake (dPoS) technology, featuring over 50 validators and introducing staking rewards between 10% and 15%—a considerable return compared to Ethereum and Solana.
In addition to decentralization and staking, IOTA will adopt the Mysticeti Consensus mechanism. This innovation will drastically boost scalability, allowing the network to process over 50,000 transactions per second (TPS), outperforming Ethereum’s ~50 TPS and Solana’s ~3,000 TPS.
A deflationary model is also on the horizon, with IOTA set to implement a token burn mechanism to reduce supply. As coins are sent to inaccessible addresses, the circulating supply will decrease, potentially boosting the token’s value over time.
Technical indicators are aligning with the upgrade narrative. The Relative Strength Index (RSI) and MACD both exhibit bullish divergence, suggesting growing buying pressure despite the recent price consolidation. With the falling wedge nearing convergence, many traders expect a breakout toward the $0.4175 mark—the March 2023 high—representing a potential 150% upside from current levels.
With a rare technical setup and a fundamental overhaul imminent, IOTA is drawing attention from traders and long-term investors alike. As the crypto community awaits the Rebased upgrade, all eyes are on IOTA for what could be a major breakout moment.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: IOTA Rebased Fueling Africa’s Web3 Boom with Game-Changing Sui Network Alliance
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
