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IOTA, the flagship Cryptocurrency of the open-source Distributed Ledger Technology platform, has become the best-performing altcoin in the past 24 hours. During this period, the asset’s value has skyrocketed 40%, trading at $0.48.
As an altcoin that has not received attention for a long time, many people may wonder why this token suddenly skyrocketed. On-chain analysis reveals the reasons for that and what could be next for this Cryptocurrency.
IOTA Increases Demand as Older Cryptocurrencies Drive the Market
According to TinTucBitcoin analysis, IOTA stands out as the best-performing altcoin. The main reason is due to the market’s increasing interest in Cryptocurrencies from previous cycles. Prominent assets such as VeChain (VET), Hedera (HBAR), and Algorand (ALGO) have received significant bids in the past 24 hours, with many of these coins being launched between 2017 and 2020.
Besides rising demand for legacy Cryptocurrencies, IOTA’s strategic pivot to becoming a Real Asset (RWA) project has strengthened its position.
Furthermore, getting started The Rebased governance vote, which aims to reduce transaction costs, enhance throughput, and introduce Move-based smart contracts on the parallel Layer-1 DAG ledger, further strengthens the bullish outlook for IOTA.
From an on-chain perspective, Santiment data shows that IOTA’s volume has increased to $675.51 million. This is the highest value it has achieved since November 2017, confirming the notion that this Cryptocurrency is attracting a lot of bidding.
If volume continues to increase along with price, IOTA could be worth more than $0.48 in the next few days. In addition to volume, IOTA’s Open Interest (OI) also increased to $72.37 million. OI measures the level of speculative activity surrounding a Cryptocurrency.
High OI often indicates that there is a large amount of capital being invested, with new long positions being established. This shows that traders are increasingly confident in the market’s upward movement, contributing to bullish sentiment.
On the other hand, low OI implies that traders are withdrawing funds and closing existing positions. Therefore, the increase in this altcoin’s open interest reflects growing participation, suggesting that the price of this altcoin may continue to rise.
IOTA Price Prediction: Approaching the $1 Threshold
On the IOTA/USD chart, Bull Bear Power (BBP) shows a clear increase. BBP compares the strength of buyers and sellers. When it increases with a green histogram bar, it indicates that the bulls are in control.
On the contrary, if BBP has a negative value, it means that the bears have the advantage, and the price may increase. For IOTA, this is the latter case. Additionally, the Money Flow Index (MFI), which shows the level of capital inflow into a Cryptocurrency, has climbed, indicating that buying pressure around the Token is present.
If this continues, IOTA’s price could rise to the highest point of the wick of the last candle, at 0.53 USD. In an extremely optimistic scenario with increased demand, it could move closer to 1 USD.
On the other hand, if profit-taking becomes an influence, IOTA could lose its position as the best-performing altcoin and fall to $0.28.
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