IOTA price erased some gains earlier this year as the momentum waned. It jumped to a high of $0.3135 on Monday before resuming its downtrend to $0.2190. It has dropped by over 65% from its highest level in November last year. This crash means it has moved into a bear market, which is typically defined as a 20% decline from a local high.
IOTA Rebased to Be a Catalyst
The IOTA token has remained in a strong bear market even as investors anticipate the upcoming Rebased upgrade. Rebased is a major upgrade that will introduce new features to the network as it seeks to compete with Tron, BNB Chain, and Solana.
The first notable part of the Rebased upgrade will be MoveVM smart contracts, making it easy to build applications in industries like Decentralized Finance (DeFi) and supply chain solutions. It will also support multi-VMs since it will support Ethereum Virtual Machine (EVM).
The Rebased upgrade will introduce full decentralization by adopting the Delegated Proof of Stake (DPoS) mechanism. It will also be a high-performing chain capable of handling over 50,000 transactions per second (TPS), much higher than other chains like Solana and Ethereum.
Most importantly, IOTA token holders will earn between 10% and 15% rewards by delegating their tokens to the network. These rewards will be higher than those of most cryptocurrencies, like Solana and BNB.
The eventual launch date for the IOTA protocol has not been disclosed, but it is likely to happen this month or in the second quarter. Such a launch would be a bullish catalyst for the token since most tokens rally ahead of a major upgrade.
The IOTA token price will react to the prices of other cryptocurrencies like Bitcoin, Ethereum, and XRP and to broader macroeconomic factors.
IOTA Price Forecast
The daily chart indicates that the IOTA token price peaked at $0.6320 in December before sharply pulling back to a low of $0.1745, where it formed a double-bottom pattern. A double-bottom is a popular bullish sign in the market.
The coin has also been forming a falling wedge chart pattern, a popular bullish reversal sign. This wedge comprises two falling and converging trendlines, and a bullish breakout is usually confirmed when the two lines near their confluence level.
IOTA surged above the upper side of the wedge and has now retested it. A break and retest are widely seen as highly bullish signs in the market.
Therefore, the IOTA price will likely resume the uptrend this month, with the next target at $0.4200. This target, which has been the highest since March 2024, represents the upper side of the cup and handle pattern.
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