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IOTA Surges 46% as Voting on Rebased Upgrade Commences
IOTA ($IOTA ) has emerged as one of the top-performing cryptocurrencies, surging 46% in the past 24 hours to a six-month high of $0.504. This rally boosted its market capitalization to over $1.7 billion and extended its monthly gains to more than 350%. Daily trading volume also surged 83%, reaching $705 million, as of press time.
The price spike coincides with a sharp rise in futures market activity. Data from CoinGlass shows that open interest in IOTA futures hit a record $87.89 million, a significant increase from last week’s low of $26.27 million, reflecting heightened investor interest.
Catalyst: The Rebased Upgrade Voting Process
The surge in IOTA’s price follows the initiation of voting for its highly anticipated Rebased upgrade. This upgrade is poised to transform the IOTA Layer 1 mainnet by introducing several groundbreaking features:
Move-based smart contracts for enhanced programmability.
Full decentralization of the IOTA ledger.
Staking rewards with an initial target inflation rate between 6% and 7%.
Improved tokenomics with adaptive fee-burning mechanisms and sponsored transactions.
The voting period, which began on December 2, will continue until December 9, with results to be tallied by December 16. This upgrade aims to reduce transaction costs, improve scalability, and enhance the user experience on the IOTA network.
Altcoin Market Momentum
IOTA’s rally aligns with broader bullish trends in the cryptocurrency market. The Altcoin Season Index recently hit 81, indicating that many altcoins are outperforming Bitcoin. Additionally, the Crypto Fear and Greed Index reached 76, signifying strong bullish sentiment across the market.
Technical Analysis and Price Predictions
Positive Indicators
IOTA recently broke out of a large falling wedge pattern, a bullish indicator, and surpassed a major resistance level at $0.40. Analysts predict the next short-term targets at $0.70 and $1, with mid-term projections as high as $2.60, representing a potential 430% increase from current levels.
The altcoin has moved above its 50-day and 200-day Exponential Moving Averages (EMA), which are at $0.1914 and $0.1710, respectively. The recent formation of a golden cross—a bullish technical pattern—suggests further upside potential.
Potential Pullback
Despite the optimism, the Relative Strength Index (RSI) and Stochastic Oscillator indicate that IOTA is in overbought territory. This suggests a possible short-term pullback, with support levels at $0.30 before the rally resumes. The next major resistance lies at $1, a level IOTA failed to surpass in 2022. Breaking this resistance could propel the price toward $1.49, its December 2021 peak.
Market Outlook
Analysts believe IOTA’s recent breakout follows a two-year accumulation phase, positioning it for significant growth as whales rotate profits into the altcoin. While short-term volatility is expected, the Rebased upgrade and increasing adoption suggest a promising outlook for IOTA’s future trajectory.
The price spike coincides with a sharp rise in futures market activity. Data from CoinGlass shows that open interest in IOTA futures hit a record $87.89 million, a significant increase from last week’s low of $26.27 million, reflecting heightened investor interest.
Catalyst: The Rebased Upgrade Voting Process
The surge in IOTA’s price follows the initiation of voting for its highly anticipated Rebased upgrade. This upgrade is poised to transform the IOTA Layer 1 mainnet by introducing several groundbreaking features:
Move-based smart contracts for enhanced programmability.
Full decentralization of the IOTA ledger.
Staking rewards with an initial target inflation rate between 6% and 7%.
Improved tokenomics with adaptive fee-burning mechanisms and sponsored transactions.
The voting period, which began on December 2, will continue until December 9, with results to be tallied by December 16. This upgrade aims to reduce transaction costs, improve scalability, and enhance the user experience on the IOTA network.
Altcoin Market Momentum
IOTA’s rally aligns with broader bullish trends in the cryptocurrency market. The Altcoin Season Index recently hit 81, indicating that many altcoins are outperforming Bitcoin. Additionally, the Crypto Fear and Greed Index reached 76, signifying strong bullish sentiment across the market.
Technical Analysis and Price Predictions
Positive Indicators
IOTA recently broke out of a large falling wedge pattern, a bullish indicator, and surpassed a major resistance level at $0.40. Analysts predict the next short-term targets at $0.70 and $1, with mid-term projections as high as $2.60, representing a potential 430% increase from current levels.
The altcoin has moved above its 50-day and 200-day Exponential Moving Averages (EMA), which are at $0.1914 and $0.1710, respectively. The recent formation of a golden cross—a bullish technical pattern—suggests further upside potential.
Potential Pullback
Despite the optimism, the Relative Strength Index (RSI) and Stochastic Oscillator indicate that IOTA is in overbought territory. This suggests a possible short-term pullback, with support levels at $0.30 before the rally resumes. The next major resistance lies at $1, a level IOTA failed to surpass in 2022. Breaking this resistance could propel the price toward $1.49, its December 2021 peak.
Market Outlook
Analysts believe IOTA’s recent breakout follows a two-year accumulation phase, positioning it for significant growth as whales rotate profits into the altcoin. While short-term volatility is expected, the Rebased upgrade and increasing adoption suggest a promising outlook for IOTA’s future trajectory.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
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