IOTA Runs Into Familiar Resistance but Outlook Brightens on Geo-Tag Transaction Proposal
IOTA (MIOTA) ran into familiar resistance on Sunday, as the bulls failed to break through a known area of supply that has thwarted the last two major rally attempts for the Internet-of-Things protocol. Beyond the technical indicators, IOTA is taking definitive steps to build the future smart economy using its proprietary Tangle data structure.
MIOTA Price Analysis
After peaking near the 31-cent mark on Saturday, MIOTA quickly fell back below $0.3000. The cryptocurrency reached a low of $0.2982 on Saturday, according to CoinMarketCap. It was last valued at $0.3000, where it was down 1.7%.
MIOTA trade volumes have declined in lockstep with its price. From a high near $25 million, exchange-based volumes are back down to $18.6 million. Huobi was the primary market for MIOTA trades, accounting for slightly more than half of the turnover.
IOTA, now the 14th largest cryptocurrency by market cap, faces immediate support just below $0.2800. On the opposite side of the ledger, sellers are camped between $0.3200 and $0.3400.
At current values, the IOTA blockchain has a total market capitalization of $834 million. Its market cap briefly returned above $1 billion in early January before giving back most of its gains.
IOTA Introduces Geo-Tagging Transactions
Last week, IOTA’s developers proposed a new standard that will allow native applications to be built around geographic regions. Such a move would enable users to link transactions with a centralized data marketplace that would continuously store information and serve it to customers.
As IOTA stated in a recent blog post, “These transactions could contain localized service advertisements, sensor information or any number of other data formats.”
On March 13, IOTA’s GitHub published the library that enables users to encode and decode location data.
IOTA made news last week when it decided to do away with “Coordicide,” the network coordinator that oversees the Tangle blockchain. Although Coordicide was useful early on as a way to detect double-spends and 51% attacks, its presence stood in the way of decentralization, one of IOTA’s core principles.
In addition to enabling data collection for IOT devices, IOTA is working on several smart city initiatives, including ones in Taipei and Dubai. In terms of the latter, IOTA is being bootstrapped through a startup called Akita, which was short-listed as one of the companies to help Dubai Future Accelerators ramp up the smart city project. Akita is not only funded by the IOTA Foundation, it relies heavily on the Tangle blockchain.
For additional information about IOTA’s partnerships, read IOTA Price Analysis: New Partnership with Denmark’s Largest Energy Company.
IOTA went through a severe rough patch last year after Sirin Labs decided not to implement Tangle. Divisions within the IOTA Foundation also raised concerns that the project was being led astray. News of partnerships and innovative proposals are a clear sign that the project was still on track despite losing much of its momentum.
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.
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