IOTA Price Analysis: Huge 70% Recovery; IOTA Announces New Hash Function

  • IOT/USD has jumped a big 70% over the past six sessions, small barrier eyed at $0.3630.
  • IOTA Foundation has partnered with CYBERCRYPT to host a competition, offering a prize pool of €200,000.

IOTA’s native token price is making solid ground and further strengthening the case of recovery. Looking at IOT/USD it has jumped a big 70% this over the past six sessions, moving to the highest levels seen since 20th November.

At one point it did look very much vulnerable to another steep drop, which could be have further damaging. Nevertheless, it is heading back north, a thanks to the bullish sentiment returning to the market in addition to strong fundamentals from the IOTA foundation.

New Hash Function – Troika

The IOTA Foundation this week announced that they have released a new hash function known as Troika.

This is a new lightweight trinary cryptographic hash function, which is in collaboration with CYBERCRYPT A/S – a world leading system provider in robust cryptography and cyber security. Troika has been created to deal with all known cryptanalytic attacks. It is also being made available to the public for their own evaluation.

Both the IOTA Foundation and CYBERCRYPT are hosting a competition. This will be aimed at inviting cryptanalysts for their evaluation of Troika. The total prize pool valued at €200,000, a reward essentially to those that can crack this new hash function.

Technical Review – IOT/USD

IOT/USD daily chart jumping over 70% and escaping from a bearish pennant set up.

As detailed earlier, vulnerabilities were heavily to the downside between 7th to the 16th December. Price action for IOT/USD via the daily chart view, had formed a bearish pennant pattern. This was very much subject to a breakout deeper south. The bulls however managing to defy the technical set up and breach this to the upside.

The above-detailed resulting in the most recent jump to the north, of over 70%. There most recently, at the time of writing, has been a minor slow down in upside momentum. A small barrier is seen just ahead at $0.3630. This halted the bulls during the Thursday session. This was a key near-term area of support, observed between 14th to 19th November.

Upside Targets

Should another wave of momentum kick in to the upside, causing a break of the barrier at $0.3630, then a fast move higher could be seen. The next major area of interest will be the pre-November fall area. Bulls would be targeting another 30-60% jump, taking the price back towards $0.5000-0.6500 price range.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Author:
Ken has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.