IOTA price continued its strong rally this week, helped by the strong crypto comeback. The coin soared to $0.402, its highest level since May 2022. It has jumped by more than 20% from its lowest point in 2023.
Why IOTA is rising
IOTA coin has bounced back in the past few months even though the network has not made any major headlines. One of its biggest headlines happened in November when the IOTA Foundation received a license in Abu Dhabi.
The other important news was that the IOTA Ecosystem was launching a grants program to support developers in its ecosystem. These grants are very useful since they help developers access capital and technical know-how in development.
Meanwhile, ShimmerEVM, its canary platform, has not been doing well as the total value locked (TVL) in the ecosystem has dropped from almost $14 million in 2023 to about $8.36 million today. SMR, its native token, has been left behind in the crypto bull run as it crashed by over 60% from its highest point in 2023.
The main reason why IOTA price has done well is that the developers signed a major deal to power global trade. It signed a partnership with organizations like TradeMark East Africa, Institute of Export, and Global Alliance for Trade Facilitation.
These organizations will develop tools using IOTA’ DLT technology to boost global trade and reduce barriers. This will include using the platform to ensure that all trade and supply chain data is on-chain.
IOTA price has also jumped because of the ongoing correlation with Bitcoin. This correlation has helped to push most altcoins higher. Bitcoin soared above $73,000 and there is a possibility that this trend may continue in the coming weeks as the halving event nears.
IOTA price forecast
In my last article on IOTA, I predicted that the coin would continue rising as the crypto bull run gains steam. This prediction was accurate as IOTA soared to a high of $0.4200. It has risen by more than 200% from its lowest point in 2023.
IOTA has also jumped above the crucial resistance point at $0.3718, its highest point in December last year. It has remained above all moving averages, signalling that bulls are in control.
At the same time, the Relative Strength Index (RSI) has moved above the overbought level of over 80. This is a sign that it has a bullish momentum. Therefore, the outlook for IOTA is still bullish, with the next price to watch being at $0.50.
