It is a cryptocurrency designed for the Internet of Things (IoT). There is no concept of block or blockchain and thus no concept of mining. It uses a different data structure, tangle, which is based on a directed acyclic graph. With this concept, each company can explore new business models by making every technological resource a potential service to be traded on an open market with no fees. According to analysts, IOTA has a very good risk/reward ratio in the market right now which means you stand to gain a lot more for taking a comparatively smaller risk. IOTA has already big and well-known partners like Accenture and Deutsche Telekom, with ambitions for additional big partners in the future. The price of IOTA has been trading in a $0.15-$0.30 range for a while and according to technical analysis, the downtrend is still very strong. The first strong sign of recovery could be if the price jumps above $0.5 but everything indicates that this will not happen soon. Some analysts believe that the end of capitulation is right around the corner and they hope that the price could reach historic levels. In the chart below (a period from February 2019), I have marked major resistance and support levels which can help us to understand where the price could move. The current resistance levels are $0.3, $0.4 and $0.5, $0.20 represents the current support level.
We can also notice that the price of IOTA has weakened from $0.31 to $0.15 in less than 180 days and the current recovery could not be considered the end of this trend. It is very hard to predict where the price of IOTA will go, but if the price jumps again above $0.4 it would probably reach $0.5 in the short time period. If the price jumps above $0.5 we have an open way to $0.6. If the price drops below $0.2 strong support that would be a strong “SELL” signal and the open way to $0.15.
Recommendation: The crypto market goes through bullish and bearish phases that hugely influence the price of IOTA. IOTA has a short-term resistance area at $0.3 and it would take a break above this level to confirm a new leg higher towards the $0.4 level. According to analysts, IOTA has very big potential in real-world applications and IOTA was planned from the beginning to interact with everything. The future actually looks bright for IOTA but investors should have in mind that IOTA isn’t the only privacy coin competing for market share and some other cryptocurrencies could potentially limit the adoption of IOTA. I would recommend everybody to be careful and to invest a small sum of money in IOTA, the best time period for me is between 3-5 years, hold and wait. According to the rules of technical analysis, the “bearish” trend of this cryptocurrency is still very strong. If the price jumps again above $0.4 that could be a very good opportunity for the short term traders, short-term traders can put the stop loss at $0.35 and take profit at $0.5 or above. If the price drops below $0.2 support that would be a “SELL” signal and the open way to $0.15.