Internet of Things Application (IOTA) facilitates transactions between devices. It goes beyond the scalability of blockchain technology, where users must verify two other previous transactions before submitting a new one. That means there is no central ledger to verify the transactions and no need for mining power consumption like Bitcoin.
On this network, devices randomly verify each other’s transactions, also known as Directed Acyclic Graph (DAG), but it is called a ‘Tangle’ in the IOTA community. The best part is it offers free and fast transactions because the network will grow as the Tangle grows. It also facilitates machine-to-machine payments and micro payments.
However, the biggest concern is the network uses many new technologies, so it is not a tested solution for real-world businesses. The MIOTA developers have written new cryptography instead of relying on established one. A complete verification and security checking process of cryptography take years to complete. If you want to invest at this early stage, you should focus on the overall architecture and history of the development team.
It is already a major force in the world economy because it works with reputed brands like Dell, Volkswagen, Bosch, Dun & Bradstreet, Fujitsu, and many others to create devices like cameras, chips, and sensors to monitor homes, factories, and shipping lanes. It shows the opportunity for the future exponential growth of IOTA.
On this daily chart, the IOTA price has been consolidating between a range of $0.36 and $0.23. However, on the technical side, MACD is neutral with RSI at 50. Interestingly, Bollinger Bands show a lack of volatility.
Candlesticks are just around the baseline of the Bollinger Bands, which does not indicate bullishness. Based on the price action, we can assume MIOTA will return to the support level.
However, on the weekly chart, MIOTA is taking support around the current trading price of $0.29. Technical indicators also support the bearish trend. RSI is below 40, and MACD is neutral, which suggests a consolidation phase. However, we can assume a bullish rally after this consolidation phase. So, it is better to accumulate some coins for the long term.
It is not a time to trade on leveraged positions, so you should only focus on long-term investment. However, some risky traders may take a bearish position for the short term. However, analysts are bullish on the IOTA price.
According to the algorithmic trading software, the price will reach an all-time high of $3 in the next five years. That means it is the perfect time to enter the market and wait for long-term capital appreciation. Please do not take it as a recommendation because the algorithmic price may not be appropriate all the time, but you should rely on technical indicators, which also suggest future growth.
