Technical Analysis and Market Entry: IOTA (MIOTA) – Stronger Moves Higher Awaited Following Major Network Upgrade
- The IOTA (MOITA) price is moving within consolidation mode, but price behavior looks very much supportive of further moves north.
- The IOTA Foundation announced details and a blueprint of a significant network upgrade known as Coordicide.
MIOTA/USD: Recent Price Behavior
IOTA has maintained sturdy heights with the price on a powerful path to recovery. It has managed to gain over 70% since the start of 2019, after suffering a beating throughout 2018, which picked up pace to the downside at the end of the year. The price last week managed to jump to its highest levels since October 2018, reaching the $0.55 territory.
A strong run to the north was seen last week, thanks a big boost being handed to the bulls in the week prior. IOTA had been moving within the confinements of a bullish pennant pattern structure. Upside had been restricted from 15-26th May, until the bulls managed to breakthrough, inviting a strong wave of buying pressure.
Following the noted push north from the technical pennant, the price went on to gain a whopping 37% before running into a barrier. Since the bulls have had the wind taken out from their sails, MIOTA/USD has been moving within consolidation mode. The narrowing price action observed would suggest an imminent breakout for a continued move higher.
Major Network Upgrade – Coordicide
Recently the IOTA Foundation announced a major network upgrade called Coordicide. It aims to provide a new type of decentralized mechanism to secure data and digital assets on IOTA’s Tangle-based network.
IOTA’s Coordicide update will be addressing three main issues with blockchain technology: high transaction costs, scalability challenges and propensity towards centralization. All areas were detailed in the blog post.
The IOTA Foundation stated:
“IOTA promises that the new upgrade will provide increased scalability, faster transaction finality and easier node maintenance, as well as a variety of novel use cases. These are likely to include data-streaming services and other real-time applications. IOTA maintains that such uses are currently not feasible in other systems featuring DLT.”
Given the recent stabilization and consolidation of the MIOTA price following such an aggressive move north, further buys look attractive. The price appears to be bottoming down at $0.4610, which has provided support for the past four sessions. Upside within the same noted period has been capped at $0.5135.
The next area of interest for the bulls will likely be the $0.6250-$0.6300 range, which is the next major area of supply. MIOTAlast traded up at these heights back in mid-September 2018. Further north, the $0.7450 territory would be another target, the high area of September 2018. In terms of stops, these should be considered just below the lower part of the current daily range at $0.4450.
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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