Will IOTA bounce back or continue trading below $ 0.50?

The IOTA cryptocurrency was theorized shortly after Bitcoin was officially launched in 2012. It was even launched on the Bitcoin forum by announcing a token sale. The goal? Simple, faster, efficient, decentralized general ledger. IOTA was developed as the world’s first permissionless, contactless and production-ready distributed ledger technology for the Internet of Things (IoT).

IOTA uses a DAG, or Directed Acyclic Graph, which can be used to track and process transactions without using blockchains to complete a transaction. Instead of using a decentralized network, they use what is known as a central coordinator to prevent an attack on their tangle node system.

Tangle doesn’t use blockchain or miners to validate transactions. Instead, network participants are responsible for validating the transactions. For every single transaction they spend, participants must validate two transactions that have already been submitted to the network.

This helps JOTA a free cryptocurrency network and facilitates micro-payments. To address the problem of SPAM, every transaction requires computing resources like the Proof of Work based cryptocurrencies.

IOTA, as we know, has a token called the IOTA token. It has a limited edition of 2,779,530,283,277,761 IOTA. The combination of validation, miner and blockchain into a single participating identity makes IOTA able to support microtransactions. Let’s move on to the IOTA cryptocurrency price analysis.

IOTA price analysis

Despite the bullish sentiment in the crypto market, IOTA was unable to hit the all-time high of $ 6.67 it hit on December 1st, 2017. The following market negativity pushed this cryptocurrency to less than a dollar. Although the bulls managed to break the $ 1 resistance and hit a new annual high of $ 2.75 on April 15, 2021, that was not enough to allow for stronger price action on broader market valuations.

The elimination of the need for miners and fees has essentially made it less worth it in the eyes of investors. IOTA has fallen again to below a dollar. This time around, the valuation could pull back to some extent to avoid significant losses.

IOTA price holds strong resistance at $ 1.30 followed by its immediate resistance at 0.87 cents. On the flip side, the supports are active at 0.50 cents, followed by 0.28 cents. It hit a new three-month low on July 20, 2021 and is currently struggling to move to higher levels.

The RSI also suggests a slight rebound from oversold zones, suggesting a small buy at lower values, but volume charts are undermining that sentiment. There has to be a strong breakout at IOTA to make it bullish again. A closing price above 0.87 cents is considered bullish sentiment.

But right now it’s near dangerous waters. The shrinking of the Bollinger Bands suggests a collapse in valuation. With the direction pointing down, there is little hope of a recovery from current levels. In short, IOTA can still drop to almost 50 cents or maybe more.

For an upswing, there must be a positive mood in this cryptocurrency network. Even a close above the mean moving average, indicated by yellow lines in the Bollinger Bands, is a sign of strength. But before that happens, IOTA is clearly doomed.

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