IOTA is one of the most promising cryptocurrency projects currently in development. Sitting at the number 9 spot in terms of market capitalization, IOTA is priced at $2.07 as of press time.
What is IOTA?
IOTA makes use of distributed ledgers. Unlike most cryptos, it does not use a blockchain. Instead, it uses a technology called the “tangle.” The Tangle is based on a mathematical concept known as directed acyclic graphs. This design is what separates IOTA from every other cryptocurrency. IOTA managed to remove miners without sacrificing decentralization. With the need for miners removed, the need for fees is also removed. IOTA is completely free to use because everyone plays an equal role in the network, especially in verifying transactions.
Micro Transactions and Speed
Ultimately, a network like this allows for two important features: micro transactions and speed. Micro transactions are transactions that could be worth as low as fractions of cents. Major blockchain-based cryptocurrencies, like Bitcoin and Ethereum, are having difficulties when it comes to micro transactions due to their respective fees.
With regards to speed, IOTA is one of the leading cryptocurrencies in terms of transactions per second (TPS). For comparison, Paypal averages around 115 TPS and VISA averages around 3000 to 4000 TPS. At the moment, Bitcoin averages around 3-5 TPS and Ethereum averages around 15 TPS. IOTA, on the other hand, averages around 1000 TPS, which is significantly higher than most blockchain-based cryptocurrencies.
Fundamental Analysis
On the fundamental side, IOTA is a functional and purposeful project that makes a good investment opportunity. Compared to major cryptocurrencies, IOTA offers with improvements in some areas. With more partnerships in the future, IOTA could see further price appreciation.
Technical Analysis
On the technical side, IOTA is currently trading at $2.07 level. It has strong support at the $1.80 level and strong resistance at the $2.60 level. Daily trade volume is hovering around the $100 million, which is far less than the daily trade volume of $280 million when prices met the $2.60 resistance level. There are good signs of consolidation at the $2 level, which could mean that IOTA is setting up for it next big move. An increase of daily trade volume in the coming weeks could signal a bullish move. On the other hand, if volume fails to increase, we may see further drop back to support levels.
Trade wisely!
