IOTA Price Down 64% Despite Progress on Rebased Upgrade

The IOTA token has continued its downward trend, reaching its lowest level in over two weeks, despite developers making progress on the highly anticipated Rebased upgrade.

IOTA Token Price Stabilizes After Weekly Low

The IOTA token dropped to a weekly low of $0.1743 on Monday, coinciding with a decline in Bitcoin and other altcoins. However, it stabilized at $0.2230 on Friday, representing a 30% increase from its lowest level this week.

Rebased Upgrade Progress

Developers have reported that several validators have joined the Rebased testnet, including Stakefish, Realize, Allnodes, InfraSingularity, and Keyring. These validators will play a crucial role in securing the IOTA network when Rebased migrates to the mainnet.

The Rebased upgrade is expected to introduce several new features to IOTA, including:

  • A parallelized Ethereum Virtual Machine and MoveVM
  • Full decentralization
  • Transaction speeds of up to 50,000 per second, significantly outpacing Solana’s 5,000 transactions per second

IOTA Rebased builds on established tech with our own enhancements, including secure, efficient consensus, local fee markets, feeless sponsored transactions, predictable gas fees, fair validator selection, and multiVM L1 support.

IOTA Staking Yields

IOTA holders will be able to stake their tokens and earn between 10% and 15% APY, a significant figure compared to US government bonds, which yield less than 5%. In comparison, popular cryptocurrencies like Ethereum and Sui offer staking yields of 3% and 2%, respectively.

IOTA Price Technical Analysis

The daily chart shows that the IOTA token peaked at $0.6293 in December following the Rebased announcement. Since then, it has dropped by over 64% and is now hovering near its lowest level since November.

The token has formed a mini-death cross, with the 50-day and 100-day moving averages crossing. This pattern often signals further downside. IOTA has also moved below the key support level of $0.2530, its lowest point on December 20.

Currently, IOTA has fallen to the 78.6% Fibonacci retracement level. The Relative Strength Index and MACD indicators are pointing downward but are no longer in oversold territory.

As long as the price remains below the 50% retracement point at $0.30, IOTA could remain at risk. A continued decline could see it drop to last year’s low of $0.1035.

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