IOTA price suffers a deep reversal: is the rally over?

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As a seasoned crypto investor with a knack for spotting opportunities amidst market volatility, I find myself observing the current state of IOTA (IOTA) with a mix of cautious optimism and calculated patience. Having navigated numerous bear and bull markets, I’ve learned that price reversals can often present the best opportunities to acquire high-potential assets at discounted prices.

This week saw a significant turnaround in the value of IOTA, making it one of the top-100 cryptocurrencies with the poorest performance.

Over the past four days, the value of IOTA (IOTA) has been dropping steadily and reached a new low of $0.3400. This represents a decrease of 46% compared to its highest point this year.

During this period, Bitcoin (BTC) and other alternative cryptocurrencies often experience a decline when Bitcoin’s trend weakens. It’s worth mentioning that Bitcoin recently pulled back from its record high of $104,200, as its impressive surge took a temporary pause. Such dips are common when the coin reaches important milestones. For example, Bitcoin fell from $73,700 in March to $49,800 in August this year, demonstrating how it typically retreats at significant levels.

The decrease in IOTA’s price coincides with the commencement of the tallying phase for the Rebased Governance proposal. During this period, coin owners have the opportunity to keep casting their votes, and this process will conclude on December 16.

The recent update in IOTA, dubbed IOTA Rebased, represents the largest overhaul in the network’s timeline. It introduces innovative components like MoveVM and Ethereum-compatible Virtual Machines.

Furthermore, this update introduces the potential for complete decentralization and processing power capable of handling more than 50,000 transactions in a single second. Moreover, IOTA owners can choose to put their coins up as stake, thereby earning an annual return between 10% and 15%.

A number of cryptocurrency enthusiasts continue to be hopeful about IOTA’s potential for a resurgence. In a recent post on platform X, well-known crypto expert Andrew Moh pointed out that this coin boasts superior token economics compared to many others in the market.

As an analyst, I’m sharing some insights about IOTA: About 76% of its total tokens are currently in circulation. The coin has a decreasing 12% inflation rate, which is a key factor to consider. It’s also worth noting that there are no venture capital allocations associated with this token. However, the strong technical indicators suggest potential long-term growth for this digital asset.

Iota is experiencing a dip at the moment, but it’s worth noting that:

— andrew.moh (@0xAndrewMoh) December 10, 2024

IOTA price analysis: will it rebound?

Reflecting on my daily chart analysis, I’ve noticed that IOTA reached an all-time high of $0.6280 amidst the excitement surrounding the Rebased upgrade. However, it has subsequently experienced a downturn and now hovers below the significant support level of $0.4213, which was its peak on March 14th.

The coin’s value has fallen beneath a key turning point (the support and resistance level) in the Murrey Math Lines, which is at $0.3900. Historically, when assets reach these significant levels, they often rebound.

Iota currently hovers above both its 50-day and 100-day Exponential Moving Averages (EMAs), but the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) suggest a downtrend. This could mean that Iota might continue its trend of reversing its gains and touch the $0.2440 level again on the 50-day EMA. However, if Bitcoin reaches its predicted all-time high, there’s a possibility that Iota may bounce back.

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2024-12-10 17:56