IOTA Surges Over 45 Percentage as Voting for Rebased Upgrade Goes Live

IOTA (IOTA) has seen an explosive rally, surging by 46% in the past 24 hours and reaching a six-month high of $0.504. This surge has pushed its market capitalization past the $1.7 billion mark, with daily trading volume soaring by 83%, exceeding $705 million. The altcoin's monthly gains now exceed 350%, marking a significant turnaround for the cryptocurrency.

The surge comes as the IOTA Rebased upgrade gains traction. Developers initiated the voting process for this major protocol upgrade on Nov. 3, which has fueled optimism among IOTA holders and traders. Alongside the price spike, IOTA’s futures market has also seen a notable increase in open interest, hitting a new record of $87.89 million, up more than three times from just a week ago.

What is Driving IOTA’s Rise?

The main catalyst for IOTA’s recent price surge is the Rebased upgrade, a significant transformation of IOTA’s blockchain infrastructure. Developers opened the voting process for the upgrade, which is set to enhance IOTA’s Layer 1 (L1) mainnet. The Rebased upgrade introduces several game-changing features, including:

• IOTA staking rewards, allowing users to earn rewards through staking
• A targeted inflation rate between 6-7%
• Support for Move-based smart contracts, enabling greater flexibility for decentralized applications
• A move towards full decentralization of the IOTA ledger, improving the overall security and reliability of the network
• A fee-burning mechanism to make transactions more cost-efficient and sustainable

IOTA’s developers are also promising sponsored transactions, which could significantly reduce or eliminate transaction fees for users, enhancing the user experience and attracting more adoption. The upgrade has been hailed as IOTA’s largest and most comprehensive overhaul to date.

The voting for the Rebased upgrade is scheduled to last for seven days, concluding on Dec. 9, followed by a seven-day counting period, which will end on Dec. 16.

IOTA’s Surge Reflects Growing Momentum in the Altcoin Market

The price action in IOTA comes at a time when the broader altcoin market is gaining momentum. The Altcoin Season Index has recently spiked to 81, signaling that a growing number of altcoins are outperforming Bitcoin. Additionally, the Crypto Fear and Greed Index has reached 76, indicating strong bullish sentiment across the market, which has undoubtedly supported IOTA’s rally.

With heightened optimism surrounding altcoins and the broader cryptocurrency market, IOTA’s price movement appears to be in line with growing interest in alternative digital assets.

What’s Next for IOTA’s Price?

Following IOTA’s impressive rise, analysts are forecasting even more potential upside for the altcoin. Technical analysis suggests that IOTA has recently broken out of a large falling wedge pattern, a bullish indicator that signals further price appreciation. Additionally, IOTA has broken through a significant resistance level at $0.40, further fueling predictions of higher prices.

Some analysts, like Team LAMBO Charts, are forecasting that IOTA could surge to $0.70 in the near term. The altcoin’s mid-term target could reach as high as $2.60, which would represent a staggering 430% increase from its current price level.

Another analyst has highlighted that IOTA has been in an accumulation phase for over two years, which could signal the start of a broader bull run. He suggests that once IOTA breaches the $1 level, the next stop could be $3.50.

Technical Indicators Suggest Possible Pullback Before Further Gains

While the bullish outlook for IOTA remains strong, some technical indicators suggest that a short-term pullback could be in store. On the daily chart, IOTA has recently moved above both the 50-day and 200-day Exponential Moving Averages (EMAs), which recently formed a golden cross—a bullish sign for future price action. However, the Relative Strength Index (RSI) and the Stochastic Oscillator have both reached overbought levels, signaling that IOTA could face a pullback in the near term.

If a pullback occurs, the next major support level is at $0.30, where IOTA could consolidate before resuming its upward trajectory. Should IOTA break through the $1 resistance level, the next major target will be $1.49, which marks the peak from December 2021.

Conclusion: IOTA’s Bullish Momentum Could Continue

With the Rebased upgrade fueling investor optimism and technical indicators pointing toward a breakout, IOTA appears poised for continued gains. The altcoin’s surge has been one of the biggest stories in the cryptocurrency market in recent days, and with a $1.7 billion market cap, IOTA’s potential for further growth remains strong.

However, as with any asset, especially in the volatile crypto space, investors should be prepared for potential pullbacks along the way as IOTA tests new resistance levels.