IOTA Token Price Analysis Ahead of Rebased Upgrade

The price of IOTA has been trading sideways in recent days, forming a rare bullish pattern as anticipation builds around the upcoming Rebased upgrade. As of now, IOTA is priced at $0.1670, slightly above its year-to-date low of $0.1360 but still significantly below last year’s high of $0.6375.

What is the Rebased Upgrade?

The Rebased upgrade represents a major milestone for the IOTA network, transitioning it into a more accessible layer-1 blockchain. This upgrade will introduce full decentralization through a delegated proof-of-stake (DPoS) mechanism, supported by over 50 validators. Though the official release date has not yet been announced, rumors suggest it could happen later this month.

Key Features of Rebased

  • Staking and Rewards: IOTA will enable staking, allowing delegators to earn annual returns between 10% and 15%. These rates are notably higher than those offered by other popular proof-of-stake tokens like Ethereum and Solana.
  • Improved Transaction Speeds: The upgrade will introduce the Mysticeti Consensus, which will make IOTA one of the fastest players in the cryptocurrency space, capable of processing over 50,000 transactions per second. For comparison, Ethereum handles fewer than 50 transactions per second, while Solana processes less than 3,000.
  • Deflationary Mechanism: A fee-burning mechanism will be implemented, reducing the number of tokens in circulation. Burning involves sending tokens to an inaccessible address, thereby increasing scarcity and potentially boosting value.

IOTA Price Analysis

The daily price chart reveals that IOTA has formed a falling wedge pattern, which is characterized by two descending and converging trend lines. These lines are nearing convergence, signaling the potential for a bullish breakout as the Rebased upgrade approaches.

Technical indicators such as the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) also support a bullish outlook. Both indicators have shown a divergence, where momentum rises even as the asset’s price pulls back. This divergence suggests that IOTA could experience upward momentum in the coming weeks.

Price Target

If the breakout occurs, the token could aim for $0.4175, which was its highest point in March last year. This target represents a potential gain of approximately 150% from its current price level.

As the cryptocurrency market continues to evolve, developments like the Rebased upgrade could position IOTA as a stronger player in the blockchain space. Investors and enthusiasts should monitor its progress closely.

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