Key Takeaways
- IOTA’s new mainnet, the Rebased Upgrade, will go live on May 5.
- The IOTA price is following a long-term resistance trend line.
- Can the price build on its mainnet momentum and break out?
IOTA’s price increased by 90% since its April lows. The positive IOTA news regarding the new mainnet release, which went live earlier today , may have aided the increase.
Now that the new mainnet is live, let’s analyze the price action and see if IOTA will move to new highs in May.
New IOTA Mainnet
Near the end of April, IOTA announced that the new IOTA Rebased network upgrade will go live on May 5, marking the beginning of the migration from the Stardust to the new IOTA network.
The upgrade for IOTA token holders will be seamless, with no token migration necessary.
However, they must download the new IOTA wallet since it will no longer support the existing Firefly wallet.
Similarly, users must download the IOTA Ledger application for full compatibility.
According to their blog, some of the IOTA upgrades of the mainnet include:
- Complete decentralization with up to 150 validators
- Improvement in scalability with 50,000 transactions per second
- Staking rewards with between 10 and 15% annual percentage yield
- Move Virtual Machine for Layer-1 smart contracts
On the same day, IOTA will hold a post-launch X-space to celebrate the upgrade and answer community questions.
IOTA’s Long-Term Movement
The weekly time frame analysis reveals that IOTA’s most crucial level is $0.145. The price has traded above it since March 2020, except for a deviation (black circle) in October 2024.
A significant rally followed, taking the IOTA price to $0.70. Despite its increase, the IOTA price failed to break its downtrend resistance line and fell afterward, creating a higher low at the $0.145 support area.
While the IOTA price trades above support, technical indicators are not bullish. The Relative Strength Index (RSI) is 50, while the Moving Average Convergence/Divergence (MACD) is negative.
So, whether IOTA’s long-term trend is bullish or bearish is unclear.
IOTA Price Breakout
The daily time frame analysis shows that IOTA broke out from a short-term descending resistance trend line.
While the price still trades well above the breakout level, it has fallen in the past week.
The wave count gives two different outlines for the future movement. The bearish one suggests IOTA has completed an A-B-C correction (red) and will fall to new lows.
The bullish alternative suggests IOTA is in wave four of a five-wave increase (green).
IOTA’s future trend will depend on whether the price falls below the wave A/1 high (red) of $0.172.
A decline below the level will invalidate the bullish count and trigger a decline toward $0.145.
Alternatively, the IOTA price will likely reach new highs if it does not fall to this level.
Unclear Trend Ahead
The IOTA price rallied, anticipating its mainnet upgrade, but the future movement is unclear.
IOTA trades between a long-term resistance and support level, and it is uncertain if a breakout or breakdown awaits.
The $0.172 level can be a pivot for whether the trend is bullish or bearish, since a decline below it will invalidate the bullish IOTA price prediction.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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