IOTA Price Analysis: New Partnership with Denmark’s Largest Energy Company
- IOTA set to partner up with Energinet, Denmark’s largest energy company.
- IOT/USD receives some bidding within a known area of demand, preventing a further free-fall.
Recent Price Behavior
Over the last two sessions at the time of writing, IOT/USD has managed to bounce and see some minor upside. This comes after heavy selling pressure to the downside, which was seen for a prolonged period. Prior to the recent halt of bear price action, the price had been falling for seven consecutive sessions. Within this time frame, a total of around 20% was shaved off in that most recent move south.
IOTA New Partnership
The IOTA foundation is to partner up with Denmark’s largest energy company, Energinet. The use of the Internet of Things technology will be leveraged, facilitating integration into the Danish energy sector. The ultimate goal is to accelerate towards the transition of a greener energy system in the country of Denmark.
Details of partnership were announced via IOTA Foundation’s official blog post. Both organizations have signed a Memorandum of Understanding (MoU) to assist Denmark in making their full transition to green energy. This has been a target for the country’s for quite some years now. The technology that will be leveraged is IOTA Tangle, which is an open source distributed ledger; its specific purpose is for the powering the Internet of Things devices. Energinet has selected the company as all that important transition.
Energinet is undergoing use cases for the IOTA technology in the market, for the likes of heat pumps. This could direct energy from a heat sink over to a green energy power grid. They also suggest that this technology could be utilized in the of making smart buildings. A company official from Energinet, André Bryde Alnor, noted that the partnership is to eliminate the gap between the more centralized energy systems being used in Europe and the innovation of IoT devices.
In terms of the most recent bounce seen, this came as IOT/USD entered a known area of demand. This can be seen tracking from $0.2700 down to $0.2515, which last supported the price at the back end of November 2018 – early December 2018. Looking to the upside, chunky barrier of resistance can be eyed in the early $0.3100, running up to $0.3400. It had capped bull potential through most of this month, and was also the upper part of the narrow daily range-block formation. Should the bulls manage to break this area down, then there isn’t much in the way of reclaiming the $0.4000 mark. The price had last traded here up at these heights at the early part of this month.
Lastly to the downside, should the mentioned area of demand fail to hold, $0.2700-$0.2515, then another wave of selling pressure will likely follow. The bottom of December 2018 would be the next target area for the bears. This is noteworthy from the $0.2200-$0.2000 price range, where big buyers had returned within this region. Upside momentum had come into play mid-December, running north up to early January.
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.