IOTA price has gone parabolic, staging one of the biggest short squeezes in the crypto industry this week. The token jumped to a high of $0.40, up by over 287% from its lowest point this year.
IOTA Rebased Vote
There are three main reasons why the IOTA token price has surged. First, there are signs that investors are rotating to fallen angels, i.e, cryptocurrencies that thrived in 2021 and then lost their way. Some of the top-performing coins recently like Ripple, Zilliqa, Algorand, Stellar, and Theta fit that characterization.
Second, the coin soared after the developers opened the voting process for the recent Rebased upgrade.
Rebased is IOTA’s biggest upgrade that will have numerous features like the ability to earn IOTA tokens as staking rewards, initial target inflation of between 6% and 7%, full decentralization of the IOTA ledger, and move-based smart contracts.
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IOTA rebased also has lower transaction costs, adaptive fee burning mechanism, and sponsored transactions abstracting transaction fees.
This upgrade aims to attract more developers directly to the IOTA network, likely bypassing Shimmer, the canary network that was launched last year. This voting will take 7 days and complete on December 9, and then the counting process will take another 7 days.
Third, IOTA token price is soaring because of the ongoing risk-on sentiment in the crypto industry. A good example of this is the fact that the crypto fear and greed index has jumped to 85, while the altcoin season index has moved to 74. Most coins do well when there is a sense of greed in the crypto industry.
IOTA price analysis
The daily chart shows that the IOTA token price has staged a strong comeback in the past few weeks. This recovery happened after the coin formed a double-bottom pattern at $0.1338. In most periods, this pattern usually leads to a strong bull run.
Now, IOTA is attempting to cross the key resistance point at $0.4197, the neckline of this pattern. By measuring the distance between the neckline and the double-bottom, we can estimate that the coin will jump to $0.7525, the 23.6% retracement point. If this happens, then IOTA may jump by about 70% from the current level.
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