- IOTA price has pulled back in the past few days.
- This happened as the enthusiasm about its Shimmer upgrade faded.
IOTA price pared back gains made earlier this week as investors cheered the launch of Shimmer. After rising to a high of $0.3292 on September 27, IOTA crashed to a low of $0.2885 on Friday. This price is about 20% above the lowest level this month, giving it a market cap of more than $813 million. So is Shimmer a good catalyst for IOTA prices?
IOTA unveils Shimmer
IOTA is one of the oldest players in distributed ledger technology (DLT). The developers’ goal was to build the technical, decentralized infrastructure that developers can use to build their products.
Unlike most projects, IOTA is not a blockchain. Instead, it is Tangle, which is an open, feeless, and highly scalable DLT protocol. As a tangle, the network provides everything that blockchains offer and much more. For one, tangle is made up of individually connected transactions that form a directed acyclic graph.
IOTA has had some success in the past few years. However, most analysts have been critical of the project’s impact in the industry. For one, it has been overtaken by newer projects like Solana and BNB Chain in attracting developers. It has a negligible market share in industries like NFTs and DeFi.
Therefore, IOTA developers have been working on Shimmer, a project they hope will become the best platform for developers. This project was launched this week while its token, known as SMR has been listed in key exchanges.
Find out how to buy IOTA.
Shimmer is simply a composable tokenizing framework that makes it possible for developers to tokenize anything without any gas fees. Its smart contract also will have full Ethereum Virtual Machine (EVM) capability. Most importantly, it is the infrastructure layer that connects everything as an all-encompassing bridge.
Still, it is too early to tell whether Shimmer will lead to more transactions in the network. Also, it is unclear whether it will be a catalyst for IOTA’s performance.
IOTA price prediction
The daily chart shows that the IOTA price was in an upbeat tone towards the launch of Shimmer. This trend saw it rise from a low of $0.2453 to a high of $0.3292. As it rose, it managed to move above the important resistance level at $0.30, which was the highest point on August 25.
IOTA has now pulled back and dropped below the important level at $0.3077. It has also moved below the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has tilted downwards.
Therefore, there is a likelihood that IOTA will continue falling as the hype surrounding Shimmer evaporates. If this happens, the next key support level to watch will be at $0.25.
