IOTA broke a strong resistance but has yet to turn it into a support

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Updated on Jun 15, 2024

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IOTA price recently breached the $0.24 resistance.
This level was one of the strongest obstacles in 2020.
IOTA's price growth likely came as a consequence of the Pollen Network's launch.

IOTA (MIOTA) price has recently managed to breach one of its strongest resistances in 2020 — a level at $0.2400. The coin broke this resistance successfully only once this year, back in late January. After that, this level became a support — one that IOTA’s price broke in March.

Now, however, the price broke this level once more. But, soon after it did so, its correction started, as well. For now, the price still remains above the level, but it remains to be seen whether this level will remain a support, or if it is still a resistance that was only briefly breached.

IOTA’s price growth interrupted

IOTA saw a significant price growth over the past two weeks, starting around June 28th. The coin surged strongly until it reached the resistance at $0.2400. This level proved to be troublesome in the past. In fact, IOTA price crossed it five times while moving up in 2020 alone.

Four out of these five times were followed with a price going back below this level. Three times, it happened due to the price rejection, and once it was a part of the mid-March price crash that affected the entire crypto market.

Now, IOTA broke it again around July 6th, and so far, it remained above this level despite the fact that it threatened to break it again twice in the last week.

What caused IOTA’s growth?

IOTA price growth was likely caused by the birth of its Pollen Network, which is IOTA 2.0’s first fully decentralized testnet.

It is likely that the coming of the testnet inspired many to buy IOTA, likely expecting its price to increase due to new possibilities and the very fact that the project is making positive advancements.

IOTA shared a bit more about the network in a series of tweets on July 7th.

We wanted to share some interesting (and very early) stats from #Pollen: 1. Over 280,000 messages have been sent between node operators with value transactions accounting for over 20,000 of them! #IOTA
— IOTA News (@iotatokennews) July 7, 2020

As soon as it made this little reminder, the coin price started increasing again.

Conclusion

The birth of IOTA’s Pollen Network is one of the likely causes for the coin’s recent price growth, which allowed it to breach a big resistance for only the second time this year.