- IOTA forms a bullish falling wedge pattern, signaling a potential breakout ahead of the Rebased upgrade.
- The upcoming Rebased upgrade promises 15% staking yields, faster TPS, and a deflationary supply model.
- Trading volume surges 74.13% in 24 hours as 83% of the community stays bullish on IOTA’s price action.
After moving sideways over the past few days, the IOTA token has displayed a bullish pattern as the network prepares for its Rebased upgrade. IOTA is currently trading at $0.1651, marking a decline of nearly 35% compared to its price of $0.223 during the same period last year.
It’s also significantly lower from its December 2024 high of $0.493. The coin’s price could record notable gains this month as the network’s team announces the date for the Rebased upgrade.
Upcoming Upgrade Promises 15% Staking Yields
While there’s no exact date announced yet for the upgrade, an announcement by the network in December 2024 proposed that the upgrade could happen this month. A governance vote by the IOTA community between December 2 and 17, 2024, approved the upgrade.
The upgrade will ensure greater decentralization with the delegated Proof-of-Stake (PoS) technology and make the network a more accessible layer-1 network. With decentralization, IOTA can introduce staking, and delegators can earn up to 15% returns every year.
These returns will be higher compared to other PoS networks, such as Solana and Ethereum. This network is also planning a transition to the Mysticeti Consensus to make it handle more than 50,000 transactions per second (TPS).
Should that happen, it will become among the fastest networks in the crypto space. By comparison, Solana and Ethereum handle less than 3,000 TPS and 50 TPS, respectively.
This network is also planning a fee-burning mechanism, which would make it a deflationary network. Crypto projects usually reduce the circulating supply of their native tokens by sending such tokens to dead wallets through the burning process. A side benefit of this process is that it boosts the value of the token.
Technical Indicators Flash Bullish Signals for IOTA
The token’s 24-hour chart has shown the falling wedge pattern, with the resistance and supporting lines on a downward slope. Also, the volume bars are decreasing in this downward trend.
In addition, the RSI at 46.32 is up from an oversold territory and suggests a weak bearish momentum. The MACD indicator has also displayed a bullish crossover; the MACD line (blue) is crossing over the signal line (orange).
24-hour price chart. Source: TradingView
CoinMarketCap data shows a 74.13% increase in the coin’s trading volume in the last 24 hours to $29.17 million, and 83% of the community are bullish about its price movement.
Source: CoinMarketCap