IOTA’s price has faced a steep decline in recent months, erasing earlier gains as market momentum weakened. After reaching a high of $0.3135 on Monday, the cryptocurrency resumed its downtrend, plunging to $0.2190. This represents a drop of over 65% from its peak in November last year, officially pushing it into bear market territory, which is defined as a decline of more than 20% from a local high.
Rebased Upgrade: A Potential Game-Changer for IOTA
Despite the prevailing bearish sentiment, investors are keeping a close eye on the highly anticipated Rebased upgrade, which is expected to introduce significant improvements to the IOTA network. This upgrade aims to position IOTA as a strong competitor to major blockchain networks like Tron, BNB Chain, and Solana.
A key component of the Rebased upgrade is the introduction of MoveVM smart contracts. This advancement will facilitate the development of applications in sectors such as Decentralized Finance (DeFi) and supply chain solutions. Additionally, Rebased will support multiple virtual machines (VMs), including Ethereum Virtual Machine (EVM), enhancing interoperability and developer adoption.
Another critical aspect of the upgrade is the transition to a Delegated Proof of Stake (DPoS) consensus mechanism. This shift will bring full decentralization to the IOTA network while significantly improving scalability. The network is expected to handle over 50,000 transactions per second (TPS), surpassing other blockchains like Solana and Ethereum.
Moreover, IOTA token holders stand to benefit from attractive staking rewards, estimated between 10% and 15%. These yields outpace those of competitors such as Solana and BNB, potentially driving increased demand for the token.
While an official launch date for the Rebased upgrade has not been announced, speculation suggests it may roll out by the second quarter of the year. Historically, major protocol upgrades have served as bullish catalysts for cryptocurrencies, fueling price rallies in anticipation of improved utility and adoption.
IOTA Price Forecast: A Bullish Reversal Ahead?
Technical indicators suggest that IOTA may be primed for a rebound. The token has formed a double-bottom pattern at $0.1745, a widely recognized bullish signal. Additionally, a falling wedge pattern, another bullish formation, has emerged, suggesting the potential for an upward breakout.
Following a breakout above the wedge, IOTA has retested the upper trendline, reinforcing the likelihood of a rally. If bullish momentum builds, the next target for IOTA could be $0.4200, a key resistance level last seen in March 2024.
Also Read: IOTA Comeback? After a 60% drop, IOTA just surged 10%, breaking out of a falling wedge!
As market sentiment shifts and the Rebased upgrade approaches, IOTA’s price trajectory will also be influenced by macroeconomic conditions and the performance of leading cryptocurrencies like Bitcoin, Ethereum, and XRP. Investors remain cautiously optimistic about IOTA’s ability to regain lost ground and capitalize on its upcoming developments.
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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