IOTA price plunges as new governance vote starts

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Over the past two days, the value of IOTA has dropped, undoing some of the progress achieved towards the end of last week. This decline occurred following a significant governance vote by IOTA token owners.

Iota, a prominent distributed ledger system, dipped to $0.30, marking a drop of more than 53% from its peak in December. This decrease occurred simultaneously with the broader cryptocurrency market sell-off, affecting coins such as Bitcoin (BTC) and Solana (SOL).

The decrease occurred as IOTA token holders started voting on a bold expansion plan featuring elements such as public advocacy efforts and on-chain performance indicators. If this proposal gets approved, the 44.8 million tokens currently controlled by Tangle DAO will be released to promote the network.

The ongoing voting period, initiated not too long ago, will stretch out for a full seven days before wrapping up on January 20th. Preliminary findings suggest that an impressive 97% of voters are in favor of the proposition; however, as the voting process moves forward, this percentage might shift slightly.

The opportunity for IOTA token holders to cast their votes has begun! The focus is on the new plan called IGP – 0007, titled “#IOTA Growth Initiative.” This initiative aims to boost public recognition and improve on-chain network statistics. The 7-day voting period starts today, January 13th at 3PM CET. For more details on the proposal, please click below. 👇

— IOTA (@iota) January 13, 2025

This proposal is a continuation of the decision made by the community regarding the Rebased update. The Rebased upgrade is set to enrich the IOTA ecosystem with innovative elements such as concurrently operating MoveVM and EVM, complete decentralization, processing up to 50,000 transactions per second, and staking returns ranging between 10% and 15%.

It’s predicted that this update will significantly improve the network’s capabilities, empowering developers to construct distributed apps. In essence, this places IOTA in competition with networks such as Solana and Ethereum within the decentralized application development scene.

Nevertheless, Iota’s past efforts to establish a standalone chain have encountered obstacles. To illustrate, the canary network, Shimmer, has managed to secure only a modest total value of $728,000.

IOTA price analysis

The day-by-day graph indicates that IOTA reached a high of $0.6280 in December, but since then it has fallen to $0.30. However, it continues to stay above both its 50-day and 100-day Exponential Moving Averages, suggesting some stability even amid the drop.

As I analyze the market trends, I’ve noticed that the token in question has developed a slanted triple-bottom pattern, with the support line at approximately $0.400. Typically, a triple-bottom pattern is viewed as a positive or ‘bullish’ sign in chart analysis.

If Iota’s current downward trend continues, there’s still a chance it might rebound to around $0.400. But if it falls below its 50-day moving average and the ascending trendline, the likelihood of such a rebound decreases significantly. In this case, Iota could potentially drop towards the psychologically significant support level at approximately $0.2500.

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2025-01-13 17:54