The IOTA price has crawled back in the past few days as sentiment in the crypto industry has improved and as the market waits for the upcoming Rebased upgrade. The IOTA token traded at $0.2025, up slightly from the year-to-date low of $0.1600.
IOTA Rebased To Be a Catalyst
The recent IOTA coin price action has largely mirrored that of other cryptocurrencies that have stabilized in the past few weeks.
The upcoming Rebased upgrade, which was unveiled in late 2024, could potentially have a bullish impact on the IOTA token. The upgrade aims to transform IOTA into a more developer-friendly network.
It will transform IOTA from the current centralized network into a fully decentralized blockchain. This decentralization will be done using the delegated proof of stake (DPoS) model with at least 150 validators.
The introduction of the DPoS model will benefit IOTA holders, as they can earn rewards through staking. As such, current holders who have not received a return to date will start receiving an APY of between 6% and 7%.
Most importantly, IOTA Rebased will introduce smart contracts to the network, allowing developers to build decentralized applications. These smart contracts will help transform IOTA from a complex distributed ledger network into a real Ethereum and Solana rival if implemented well.
This implementation will be crucial as many blockchain networks with smart contract features have struggled to grow. A good example is IOTA’s Shimmer network, which has attracted less than $1 million in assets.
IOTA might consider emulating Sonic, which Fantom recently rebranded. Less than three months after the rebrand, Sonic has become one of the biggest layer-1 networks.
It is unclear when the Rebased upgrade will launch, but the odds for a first-quarter release have faded. Once the testing process ends, it is likely to happen in either Q2 or Q3.
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IOTA Price Technical Analysis
The daily chart shows that the IOTA token peaked at $0.6385 in December and then retreated to $0.1590 earlier this month. On a positive note, there are signs that the coin may have reached its bottom, which may lead to more gains in the coming weeks.
The IOTA coin has formed a falling wedge pattern, a popular bullish sign characterized by descending and converging trendlines. It has also moved above the upper side of this pattern.
Oscillators have formed a bullish divergence pattern. For example, the Awesome Oscillator is set to cross the zero line while the Percentage Price Oscillator points upward.
Therefore, the outlook for IOTA is bullish. The next key level to monitor is around $0.3705, the 50% retracement point, which is about 82% above the current level.
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