IOTA has not been lucky enough to escape the digital beating that the cryptocurrencies have experienced over the last week as prices dropped by up to 25%. One IOTA is currently trading at around $1.27 at the time of writing, a drop of 37% from $2.04 one month ago.
The IOTA cryptocurrency is dedicated to the Internet of things and it has been touted as a forerunner for the third generation of blockchain. This means that it can be used by both machines and humans, but there are differences between it and other cryptocurrencies. The main difference between the two is that IOTA does not use a blockchain of any sort and instead it has been created on a new form of DLT called Tangle.
By using Tangle, it eliminates the need for miners from the entire process as every user has an equal role within the network. Verifications are carried out by all parties and combine to form a web of transaction verification that is completely free of charge. Tangle also boasts a fast transaction speed and quantum resistance.
Over the course of 2018, Tangle has suffered against the USD having started the year at $3.53 until settling at the time of writing on $1.27. During the end of 2017’s bull run, the value of a single IOTA exceeded $6.40 showing an 1800% increase but this success was not to last. Dropping to an all-time low of $1.02 in April, it then rose to the current price over the following months.
For the market to be considered a long-term bullish market, we would need to see the price break and remain over $2.66. For it to be considered a long-term bearish market, we would need to see the price go below the $1.02 point. If IOTA is able to break above the $2 mark then it is hoped that it would go on to reach its long-term peak of $2.66 however, it will need significant momentum to achieve this.
If bears begin to gather steam again and succeed in pushing prices below $1.11 then we could see prices heading once again to $1.02. When we look at the technical indicators, they are currently showing signs that favour the bulls. Let us see what the next few weeks have in store!
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