IOTA cryptocurrency was theorized soon after the official launch of Bitcoin in 2012. It was even launched in the Bitcoin forum by announcing a token sale. The objective? Simple, faster, efficient, decentralized ledger. IOTA was developed as the world’s first permissionless, feeless, and production-ready distributed ledger technology for the Internet of things (IoT).
IOTA uses a DAG or Directed Acyclic Graph that can be used to track and process transactions without using blockchains for completing a transaction. Instead of using a decentralized network, they make use of something called a central coordinator to prevent an attack on its tangle node system.
Tangle doesn’t use a blockchain or miners to validate transactions. Instead, network participants are responsible for validating the transactions. Participants are required to validate two transactions already submitted to the network for every single transaction they issue.
This helps make IOTA a free cryptocurrency network and facilitates micropayments. To tackle the issue of SPAM, each transaction requires computational resources like in the Proof of Work based cryptocurrencies.
IOTA, as we know, has a token named IOTA token. It has a limited circulation supply of 2,779,530,283,277,761 IOTA. The combination of validation, miner, and blockchain into a single participating identity makes IOTA capable of supporting microtransactions. Let’s move ahead with the IOTA Cryptocurrency Price Analysis.
IOTA Struggles Below $1, Faces Bearish Pressure
IOTA, even with the bullish sentiment in the crypto market, could not reach the all-time high of $6.67 it made on December 01, 2017. The following market negativity pushed this cryptocurrency to less than a dollar. Although bulls managed to breach the $1 resistance making a new year high of $2.75 on April 15, 2021, it wasn’t enough to facilitate a stronger price action on broader market valuations.
Doing away with the need of miners and fees has essentially made it less worthy in investor’s eyes. Once again, IOTA has fallen to below a dollar. This time the valuation could retrace to some extent to prevent significant losses.
IOTA price holds strong resistance at $1.30, followed by its immediate resistance at 0.87 cents. On the downside, supports are active at 0.50 cents followed by 0.28 cents. It created a new three months low on July 20, 2021, and is currently struggling to move ahead towards higher levels.
RSI also indicates a slight bounce from oversold zones indicating a small buying at lower values, but volume charts nullify this sentiment. There needs to be a strong breakout in IOTA to make it bullish again. A close above 0.87 cents will be considered a bullish sentiment.
But right now, it is close to dangerous waters. The shrinking of Bollinger bands is indicating a breakdown in valuation. Since the direction is downwards, there is little hope of retracing from current levels. In short, IOTA can still fall close to 50 cents or maybe more.
For an upside swing, there needs to be a positive sentiment in this cryptocurrency network. Even a close above the median moving average indicated by yellow lines in Bollinger bands will indicate some sign of strength. But, before that happens, IOTA is clearly doomed.
