IOTA price forms mini death cross despite key Rebased update

$IOTA continued its downward trend this week, reaching its lowest level in over two weeks, even as developers made further progress on the Rebased upgrade.

$IOTA ($IOTA) token dropped to a weekly low of $0.1743 on Monday as Bitcoin (BTC) and other altcoins slipped. It then stabilized at $0.2230 on Friday, up 30% from its lowest level this week.

The coin retreated despite ongoing progress in the Rebased testnet. In a statement, developers reported that more validators had joined the testnet, including Stakefish, which has over $3 billion in staked assets, along with Realize, Allnodes, InfraSingularity, and Keyring. Other validators include Spectrum Staking, Stardust Staking, and ALUM Labs.

These validators will also help secure the $IOTA network when Rebased migrates to the mainnet. The upgrade will introduce several new features to $IOTA, including a parallelized Ethereum Virtual Machine and MoveVM, full decentralization, and speeds of up to 50,000 transactions per second. This is notable as Solana (SOL) handles less than 5,000 TPS.

Additionally, $IOTA holders will be able to stake their tokens and earn between 10% and 15% APY. This is a significant figure, given that US government bonds yield less than 5%, while popular cryptocurrencies like Ethereum (ETH) and Sui (SUI) offer staking yields of 3% and 2%, respectively.

$IOTA hopes that Rebased will position it as a viable alternative to chains such as Ethereum, Solana, Aptos, and Cardano.

$IOTA price technical analysis

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$IOTA token price chart | Source: crypto.news

The daily chart shows that the $IOTA token peaked at $0.6293 in December following the Rebased announcement. Since then, it has dropped by over 64% and is now hovering near its lowest level since November.

$IOTA has formed a mini-death cross, as the 50-day and 100-day moving averages have crossed. This pattern often signals further downside. The token has also moved below the key support level of $0.2530, its lowest point on December 20.

Currently, $IOTA has fallen to the 78.6% Fibonacci retracement level. The Relative Strength Index and MACD indicators are pointing downward but are no longer in oversold territory.

As long as the price remains below the 50% retracement point at $0.30, $IOTA could remain at risk. A continued decline could see it drop to last year’s low of $0.1035.