IOTA price rose modestly this week even as the crypto industry boomed and Bitcoin neared its all-time high. The token jumped to a high of $0.3015, its highest point since January 3rd of this year. The coin has risen by 117% from its lowest point in 2023, underperforming its peers that have rallied recently.
IOTA performance explained
IOTA, one of the oldest networks in the crypto industry, has been doing well in the past few months. This price action is primarily because of what is happening in the crypto industry where most altcoins have jumped. Ethereum sits comfortably above $3,300 while other coins like Avalanche and Tron have rallied.
Historically, cryptocurrencies tend to have a close correlation with each other. In particular, most altcoins do well when Bitcoin is in an uptrend. On Wednesday, Bitcoin moved from less than $58,000 and surged to a multi-year high of $64,000 and analysts expect that it will retest its record high this week.
The other big driver for the IOTA price is the recent launch of Trade Logistics Information Pipeline (TLIP). TLIP is a platform powered by IOTA’s distributed ledger technology (DLT). It is made up of a consortium of different organizations like Trademark East Africa, Global Alliance for Trade Facilitation, and the World Economic Forum and others.
Read more: How to buy IOTA.
TLIP is a tool to facilitate trade using the distributed ledger technology. Users will be able to share data and documents that can be used by border agencies and other commercial actors.
If it is successful, the network can help to simplify how companies do cross-border business. This is important because some governments like in the UK are working to implement digitized technologies that show all data.
For example, in the UK, people in the export and import business must show details like the Bills of Lading, Certificate of Origin, Health and Inspection, and Airway bill and others. This data can be stored in TLIP in a way that it cannot be changed.
IOTA price has underperformed because of the performance of Shimmer network. Data by DeFi Llama shows that the total value locked (TVL) in the ecosystem stands at $10 million, which is lower than the YTD high of almost $14 million.
IOTA price forecast
The daily chart shows that the IOTA token price has jumped in the past few days even though it remains about 22% below its highest point this year. The token has remained above the 50-day moving average and the 38.2% Fibonacci Retracement level. It has also moved slightly above the Ichimoku cloud indicator while the Relative Strength Index (RSI) is nearing the overbought level of 70.
Therefore, the outlook for the IOTA token is bullish, with the next point to watch being at $0.3293, the highest point on December 30th. This price is about 13.4% above the current level. A break above that point will see it rally to last year’s high of $0.3717.
