- IOTA Surges 46% as Developers Initiate Voting for Major Rebased Upgrade: What’s Next for the Altcoin?
IOTA (IOTA) has been making waves in the cryptocurrency market, leading gains among the top 100 largest cryptocurrencies by market cap. In the last 24 hours, IOTA surged by 46%, reaching a six-month high of $0.504. This rally pushed IOTA’s market capitalization past $1.7 billion, as it gained over 350% in the past month. Additionally, daily trading volume skyrocketed by 83%, surpassing $705 million, further underscoring the altcoin’s resurgence.
The driving force behind IOTA’s recent price movement appears to be the launch of the voting process for its Rebased upgrade. The upgrade, which promises to be IOTA’s most significant to date, introduces several new features and improvements to the network. Among the key updates are the ability for users to earn IOTA staking rewards, an initial inflation rate target between 6% and 7%, and full decentralization of the IOTA ledger. The Rebased upgrade also aims to reduce transaction costs, implement an adaptive fee-burning mechanism, and introduce sponsored transactions to abstract transaction fees.
The voting process for this major upgrade is set to last for seven days, concluding on December 9, with the counting process taking place until December 16. These developments have sparked renewed excitement around IOTA, with a surge in open interest in IOTA futures. According to CoinGlass, open interest in IOTA futures hit a record high of $87.89 million, more than tripling from last week’s low of $26.27 million.
IOTA’s recent rally aligns with broader trends in the altcoin market, as evidenced by the Altcoin Season Index at 81, indicating that altcoins are currently outperforming Bitcoin. The heightened optimism is also reflected in the Crypto Fear and Greed Index, which has reached 78, signaling strong bullish sentiment in the market.
What’s Next for IOTA’s Price?
Following its massive surge, analysts are predicting further gains for IOTA. Technical analysis suggests that IOTA has broken out of a large falling wedge pattern, which is considered a bullish signal. Additionally, the altcoin has surpassed a significant resistance level at $0.40, further bolstering its bullish prospects.
Some analysts forecast that IOTA could rise to $0.70 in the short term and potentially reach $1 in the near future. A more optimistic prediction sees IOTA hitting $2.60, which would represent a 430% increase from its current price. Another market commentator believes that after two years of accumulation, IOTA could soar to $3.50 if it successfully breaches the $1 mark.
However, despite the strong upward momentum, there are signs that IOTA could face a short-term pullback. The Relative Strength Index (RSI) and the Stochastic Oscillator have reached overbought levels, suggesting that a retreat to test the support at $0.30 may be imminent before the altcoin resumes its upward trajectory.
Looking ahead, the next major resistance for IOTA lies at $1, a level the altcoin struggled to breach in 2022. A breakout above this resistance could propel IOTA to retest its peak of $1.49 from December 2021.
In conclusion, while IOTA’s recent rally is fueled by excitement surrounding the Rebased upgrade and increased demand, investors should remain cautious of potential volatility. If the altcoin can maintain its momentum, IOTA could be well on its way to achieving new price milestones in the coming months.
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.
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