IOTA was developed by a German team and created to support the Internet of Things (IoT) revolution, using an innovative blockchain system called “tangle”. It was created to enhance communications, transactions, and payments between machines (i.e. M2M interaction).
Considering the speed with which artificial intelligence is gaining global adoption, IOTA is and was ahead of its time when it was conceived. Part of IOTA’s unique features is that it is one of the few altcoins that cannot be mined, has no blocks, and has no chains. It comes with infinite scalability and very fast transaction times, which give it an advantage over the Bitcoin blockchain, for instance.
Still, IOTA has been held to the same whims as the rest of the cryptomarkets; a big swing up in 2017 and early 2018 and then a big fall down for the last four months. The team continues to add partners and use cases which make IOTA a popular headline on our site and others. And there are a lot of bullish technologists that see IOTA’s tech as superior to many others on the market.
Still, for IOTA’s price to truly recover from its 2018—where it started around $3.61 and now trades for just over $.5—more time is needed. The partnerships need to coalesce, and the chain itself needs to showcase its ease and speed through millions of transactions.
With IOTA still tied to Bitcoin, and partnerships in their nascent stage, IOTA’s price is not likely to have an upswing on its own in 2018. Beyond this year, it could make the kind of changes to the world of logistics and IoT processes that it purports to be able to do. But that’s looking down the road.
In 2018, we don’t see IOTA gaining much room on its BTC ratio—and staying within a 10-20% line of its Satoshi ratio. So IOTA’s year-end price will be up to the market’s reaction and trading with Bitcoin BTC. At a current satoshi value of 8,500–IOTA should trade within 7,000 and 10,000, a number that would, if BTC stays at current prices through 2018, put a year-end IOTA price prediction between $.4 and $.62.
Based on the technical analysis in this article, IOTA price looks likelier to heard toward 40 cents than up from its current place.
IOTA Prepares for the Bull Market
During bearish periods, crypto experts advise projects to build the necessary infrastructure to really make their product applicable. And this is what IOTA and its team are doing.
At the moment, the IOTA community is working hard in order to have different products launched. To start, Trinity Wallet is being used and touted by IOTA enthusiasts. The Trinity Wallet works to establish a go-to and secure wallet for holding coins; an easy on-ramp for future holders to get into IOTA investing.
The second important project that is being developed is a new digital ID. The world is moving into digitizing everything, including personal information. IOTA’s team is working in an important digital ID solution that will use its “tangle” technology. Although there is no official timeline for this project, developers are implementing Verifiable Claims Protocols to improve their services.
The ID project that is being developed is just one of the several projects that IOTA has signed with different car manufacturers.
The Swedish Central Bank (Riksbank), for instance, wants to launch the digital version of the Swedish Krona. The e-Krona will be based on IOTA and might be launched in 2019.
Additionally, two companies in the Netherlands, ICTU and XURUX, are investing in a project to verify legal documents within the ‘IOTA Blockchain.’
Projects like this boost IOTA’s standing as one of the more “practical” and “applicable” crypto assets. Its technology has shown potential benefits for these different sectors, and the bear market isn’t stopping IOTA from creating value.
In another recent move worth mentioning, ENGIE Lab Crigen has partnered with IOTA Foundation. The two companies will work on a blockchain based smart energy ecosystem. In the partnership, ENGIE will use its computer and artificial science to enhance IOTA tangle. According to an official blog post, the team will learn from each other through experimentations.
The IOTA blogpost further revealed that the two firms had signed an agreement to establish a cooperation deal between them. They will initiate smart energy systems made of two fundamental tools. The first, to manage server-based blockchain infrastructure and creation of cloud base systems. The other, focus on improving smart contracts.
Per the announcement, the company is primarily targeting the Asian market and intends to roll out the services before next year. ENGIE will further extend its services to southern Europe before May 2019. While making the announcement, Yves Le Gelard, ENGIEs vice president, expressed his delight by saying that:
“We are excited to be part of this program, which will make it possible for many actors to access the blockchain technology. It is a perfect example to show how ENGIE is digitally transforming the society,”
In the announcement post, Phillippe Calvez, a Lab Research Manager, commented that:
“Most proofs-of-concept and activities have already been initiated in the lab and thus we look forward to collaborate with larger international projects. The partnership will enlighten more people on the benefits of using innovative DLT technologies.”
Technical Analysis on MIOTA Price
Fundamentally speaking, announcements and partnerships like those mentioned above are important. In addition to these, we’re also seeing Fthe migration to the Qubic network, which will permit the free creation of smart contracts based on IOTA. Then there is the migration to the IOTA wallet, which the company hopes will lead to an increase in the number of high profile investors and consequently, increase in its price. And, as mentioned, The team has also signed up to a number of partnerships, especially in the automobile industry. So how might these affect price in the short- and long-term.
IOTA has had its own fair share of the crypto downside. After starting the year on a high of above $5, it has since shed 90% of this value to rest at $0.54042613. This price is very close to where the crypto started when it was first listed in the 4th quarter of 2017.
IOTA/USD Weekly Chart: September 11, 2018
A descending trendline marks the resistance, and along with the horizontal support line, forms the borders of the descending triangle seen on this chart. However, we see that the weekly candle so far has not had much movement. It is only slightly lower than the open price. This may indicate that selling pressure is starting to wane, especially as we are already at a support area and the oscillator is deeply in oversold territory. Prices are also very close to the apex of this triangle; a breakout could occur at any time.
The daily chart taken a few days ago shows that price has already been resisted at the 61.8% Fibo fan line, and is expected to push to the yellow shaded area. This area marks the point of intersection between the horizontal support and the 75% line.
IOTA/USD Daily Chart: September 7, 2018
Putting all these points together, what are the possible trade scenarios for IOTA/USD going forward?
- Trade Scenario 1
With price action pushing very hard against the support, and with the candles also very close to the apex of the descending triangle, it is possible that there could soon be a downside breakout to complete the triangle. However, this move may take several weeks before it occurs, in which case we may still have a candle or two left in the triangle. If price breaks to the downside, it will be a plunge to the $0.26 mark. This is the next support level in the long term. This week marks the 5th week that this support area is being tested, with buyers unable to make any inroads to the upside at the moment. Technically speaking, this is the most likely scenario.
- Trade Scenario 2
Going against all technical expectations would be for price to break above the descending trendline resistance that has served to limit upside moves for several months now. Any upside breakout is going to happen only if there is a really strong bullish response to some of the news concerning IOTA. If indeed the market receives the Trinity wallet favorably and this somehow translates into new strong buying from excited investors, then we will see this happen. At the moment, this is not the most likely option but is a possibility.
The long term, mid-term and short term outlook of IOTA is:
- Long Term – bearish
- Mid-term – bearish
- Short term – neutral
The long term market outlook on the weekly chart is bearish, because this chart is marked by progressively lower highs that are putting severe pressure on the horizontal support. Buying volumes are virtually absent at the moment.
The outlook for the medium term can be seen on the daily chart, where prices are heading downwards towards the medium term support.
It must be mentioned that this analysis was done on a weekly chart, where a signal candle takes a whole week to play out. Therefore, price moves may take some considerable time before they evolve.
Eric is a cryptocurrency writer and editor. He has written on emerging technologies for over seven years, and has accrued over 2 million page views. He also runs the paid Coin Agora community. He is currently working on his first novel, which involves a cryptocurrency start-up.