IOTA jumps by more than 45% as the voting for the Rebased upgrade goes live

IOTA (IOTA) has experienced an extraordinary price surge in recent days, rising by 46% within just 24 hours and reaching a six-month high of $0.504. This remarkable price movement has significantly boosted its market capitalization, which now exceeds $1.7 billion. Alongside this surge, the daily trading volume has increased by 83%, surpassing $705 million. The catalyst for this rally is the initiation of the voting process for the Rebased upgrade, which began on November 3. This upgrade is considered one of the most important milestones in the history of IOTA, as it introduces several critical improvements to the network. These changes are expected to not only increase the usability and functionality of the IOTA blockchain but also offer new incentives for holders of the cryptocurrency.

The Rebased upgrade brings several notable features, with one of the most significant being the introduction of staking rewards. With this new mechanism, IOTA holders will be able to earn rewards simply by staking their tokens. This change is expected to enhance the overall value proposition of IOTA, particularly as staking becomes an increasingly popular way for cryptocurrency holders to generate passive income. Furthermore, the Rebased upgrade includes a targeted inflation rate of between 6% and 7%, which will impact the supply dynamics of the token, potentially driving demand as new tokens are introduced into circulation.

In addition to these features, the Rebased upgrade also incorporates an adaptive fee-burning mechanism, which aims to reduce transaction costs and enhance the scalability of the network. This is crucial, as lower transaction fees and faster processing times are essential for improving the user experience and attracting more developers to the IOTA ecosystem. Another key aspect of the upgrade is its push for full decentralization of the IOTA ledger. The move toward a fully decentralized system is expected to increase the security and reliability of the network, addressing one of the key concerns that critics have raised about IOTA in the past. Additionally, the Rebased upgrade enables support for Move-based smart contracts, which brings greater programmability to the platform, making it more versatile for developers looking to build decentralized applications (dApps) on IOTA.

The voting for the Rebased upgrade is set to run for a seven-day period, concluding on December 9, with the counting process scheduled to take an additional week, wrapping up on December 16. During this time, the community will have a chance to vote on the proposal, which is expected to have a major impact on the future development of IOTA. The timing of the voting coincides with a broader bullish trend in the cryptocurrency market. The Altcoin Season Index, a key indicator of how altcoins are performing relative to Bitcoin, is currently at 81. This score suggests that altcoins, including IOTA, are outperforming Bitcoin, which is a strong signal of the growing interest in altcoin markets. At the same time, the Crypto Fear and Greed Index has surged to 76, indicating that market sentiment is highly optimistic, with investors showing increased risk appetite as they anticipate further gains in the crypto space.

Looking ahead, analysts have a bullish outlook for IOTA, predicting continued price appreciation in the short and mid-term. Some market experts believe that the cryptocurrency could reach $0.70 in the near future, which would mark another significant milestone for IOTA. In fact, if the upward momentum continues, there is a possibility that the price could even hit $1.00 in the short-term. More ambitious forecasts suggest that IOTA could reach $2.60 in the mid-term, representing an incredible 430% increase from its current price level. These predictions are based on the assumption that IOTA will break out of a prolonged accumulation phase, and analysts point to recent bullish technical patterns as evidence that this breakout is already in motion.

A closer look at IOTA’s technical chart reveals that the cryptocurrency has recently breached several key resistance levels, including $0.40, which had acted as a significant barrier for IOTA over the past few months. With this resistance broken, the next major hurdle is the $1.00 level, a price point that IOTA has failed to breach twice in 2022. If IOTA manages to push past this $1 resistance, it could trigger a new rally, potentially leading the cryptocurrency to retest its previous all-time high of $1.49, which was achieved in December 2021. Some analysts even predict that, if this level is surpassed, IOTA could eventually rise to as high as $3.50 in the longer term, assuming it maintains its bullish trajectory.

However, while the outlook for IOTA remains highly positive, there are some technical signals suggesting that the price may face a brief pullback before it can continue its upward movement. The Relative Strength Index (RSI) and Stochastic Oscillator, both key indicators in technical analysis, show that IOTA may currently be in overbought territory, meaning the asset could be due for a short-term retreat. A pullback to around the $0.30 level is considered a possible scenario, as the price may need to consolidate before resuming its upward rally. Such a retreat could also provide an opportunity for new buyers to enter the market at a lower price point before the next major push higher.

Despite the possibility of a short-term dip, the long-term prospects for IOTA appear bright, especially with the upcoming Rebased upgrade and the ongoing positive market sentiment. If IOTA manages to break through the $1 resistance and retest its previous high of $1.49, it could set the stage for a much larger rally, with some analysts predicting that the cryptocurrency could eventually reach as high as $3.50, provided it continues to build on its recent gains.

In conclusion, IOTA is currently riding a wave of excitement, driven by its major upgrade and the broader bullish sentiment in the cryptocurrency market. While a pullback is possible in the short term, the long-term outlook remains highly optimistic, with analysts predicting significant gains as the Rebased upgrade takes effect and the altcoin market continues to thrive. Investors will be closely watching the outcome of the voting process and how it influences IOTA’s future price movements.