IOTA (MIOTA) posts double-digit gains ahead of its Chrysalis upgrade
- IOTA records double-digit gains ahead of its Chrysalis update.
- The cryptocurrency is currently trying to break the $1.5 with confidence.
- MIOTA's next strong resistance sits at $2, while its nearest support level is the $1.33 line.
IOTA’s price posted double-digit gains in the past 24 hours, with its price reaching as high as $1.5. What was the cause of this price gain, and should you buy some MIOTA now?
Fundamental analysis: Chrysalis update pushes IOTA to new use cases
IOTA is a distributed ledger-based digital currency that doesnt actually have a blockchain. Instead, it’s built on its proprietary technology known as Tangle, a system of nodes that are used to confirm transactions. The foundation behind IOTA states that Tangle offers far greater speeds than current blockchains.
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Because there’s no blockchain, there are also no miners, and therefore no fees. IOTA aims to provide a limitless amount of transactions per second at minimal expense.
IOTA’s current push towards the upside is caused by various partnerships established in the past week. Dominik Schiener, one of IOTA’s co-founders, posted a tweet regarding the Chrysalis update and how the cryptocurrency will now be much closer to finished:
MIOTA posted week-over-week gains of 18.42%, outperforming both BTC‘s week-over-week gains of 8.52% and ETH‘s 6.71% gain. IOTA is currently the 21st-largest cryptocurrency by market cap, boasting a value of $3.97 billion.
At the time of writing, MIOTA is trading for $1.45, which represents a price increase of 262.88% when compared to the previous month’s value.
MIOTA/USD technical analysis: fakeout or a push towards $2?
MIOTA has just broken above its $1.33 resistance level that dates back from 2018. However, even though the volume skyrocketed on smaller time-frames, its daily volume is still considered to be in a descending trend. This may be an indication of IOTA’s lack of strength to push much further up.
If the cryptocurrency manages to close the daily candle above $1.33, it will have a chance to push towards the $2 mark (its next major resistance level. However, if that doesn’t happen, MIOTA will try to retrace to some of its upper Fib retracement levels.
MIOTA’s RSI on the daily time-frame has been deep in the overbought territory for quite some time now, with its current value sitting at 84.73.
Zooming in to the hourly time-frame, we can see MIOTA’s volume skyrocketing alongside its price. The cryptocurrency was fighting for the $1.33 level (its pivot point that dates back from 2018) but eventually managed to conquer it, which propelled the cryptocurrency as new buyers stepped in. We can also see that the cryptocurrency is responding to both its 21-hour and 50-hour EMAs, which currently act as moving support levels.
MIOTA’s shouldn’t encounter extreme resistance until the $2 mark. However, the next couple of hours will show if the cryptocurrency even has the strength to go as far.
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