- IOTA’s price is showing bullish potential, driven by the upcoming Rebased upgrade, which will introduce decentralization, staking rewards, and smart contracts, positioning it as a competitor to Ethereum and Solana.
- Technical indicators also signal a possible breakout, with the next key resistance level at $0.3705, an 82% increase from current levels.
The cryptocurrency market has shown signs of recovery, and IOTA is no exception. The token has gained momentum in recent days, trading at $0.2025, up from its year-to-date low of $0.1600. Several factors suggest that IOTA may experience a parabolic surge, with the upcoming Rebased upgrade playing a crucial role.
The Game-Changing Rebased Upgrade
One of the most anticipated developments in the IOTA ecosystem is the Rebased upgrade, which aims to enhance its usability and decentralization. Unveiled in late 2024, this upgrade will transition IOTA from its current centralized structure to a fully decentralized blockchain through a delegated proof of stake (DPoS) model. This means the network will have at least 150 validators, boosting security and trust among users.
A significant advantage of this transition is the introduction of staking rewards. Currently, IOTA holders do not earn returns on their assets, but with Rebased, they can receive an annual percentage yield (APY) of 6% to 7%. This incentive could drive increased adoption and long-term holding of IOTA tokens.
Smart Contracts: A Potential Ethereum Rival?
One of the most exciting aspects of the Rebased upgrade is the introduction of smart contracts, which will allow developers to build decentralized applications (dApps) on the IOTA network. If implemented successfully, this could position IOTA as a strong competitor to Ethereum and Solana.
However, the success of this transition is not guaranteed. Many blockchain networks have struggled to gain traction despite offering smart contract capabilities. A case in point is IOTA’s Shimmer network, which has yet to attract significant assets. To ensure success, IOTA may need to adopt strategies similar to Sonic, the recently rebranded Fantom network, which has quickly become one of the leading layer-1 platforms.
IOTA Price Outlook: A Bullish Pattern Emerging
From a technical analysis perspective, IOTA’s price movement suggests a potential breakout. After reaching a peak of $0.6385 in December, the token retraced to a low of $0.1590 earlier this month. Encouragingly, the chart now shows a falling wedge pattern, a classic bullish indicator.
Additional positive signals include:
- Breakout above the falling wedge: This typically indicates a shift in momentum toward an upward trend.
- Bullish divergence in oscillators: The Awesome Oscillator is approaching the zero line, and the Percentage Price Oscillator is trending upwards, further reinforcing the bullish outlook.
What’s Next for IOTA?
With the Rebased upgrade on the horizon, IOTA could see significant price appreciation. Although the exact launch date remains uncertain, the upgrade is expected to roll out in Q2 or Q3 of 2025 once testing is complete.
If IOTA continues on its current trajectory, the next major resistance level to watch is $0.3705, representing an 82% increase from its current price. Should the market maintain its positive sentiment, IOTA could see even further gains in the coming months.
IOTA is entering an exciting phase with its transition to a decentralized network and the introduction of smart contracts. These upgrades, combined with promising technical indicators, suggest that the token may be poised for a major breakout. While risks remain, particularly regarding adoption and execution, investors should keep a close eye on IOTA as it navigates this pivotal transformation.