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During the last few hours, the IOTA token experiences strong buying pressure, bringing its price up to $0.50 per unit. Although the coin is currently undergoing profit-taking, its bullish prospects appear solid in the near term. What’s next for the currency?
According to data from CoinMarketCap, the coin had a price of $0.22 on November 29. Currently, its exchange value is over $0.50, with a recent peak of $0.61 this Tuesday. With this push, the currency enters the bullish trend of the so-called alternative currencies or altcoins.
For several days now, the price of Bitcoin began to lose momentum after several failed attempts to exceed $100K. The strength of the $100,000 barrier suggests to investors that the currency will spend some time without generating returns for their capital. Hence many of them decided to dedicate a part to altcoins.
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These types of movements are becoming a trend that causes the so-called Altcoin season. As indicated by Blockchaincenter.net’s altcoin season index, BTC is performing below 90% of major altcoins over a 90-day period. At this point, the IOTA token is already joining the party.
IOTA performance in one week exceeds +124%. Source: CoinMarketCap
IOTA token on the list of investors looking to capitalize on the altcoin season
The longer Bitcoin remains stagnant, the more interest investors have in alternative currencies. Some of these tokens are rising in such a way that capitals suspect that they are approaching a correction. In that sense, investors tend to look for coins that are far from their ATHs to minimize the chances of a pullback.
IOTA can be counted in this group. The all-time high for this coin is $5.87 per unit and was established in December 2017. In 2021, the coin reached up to $2.37. This means that taking even its best price of 2021 as a reference, the current point is considerably distant.
On the other hand, so far this year, the currency presents a powerful +109% and within a month it exceeds +362%. Although a correction cannot be ruled out, the chances are smaller compared to cases like XRP, which could lose much of its recently gained value.
Beyond speculation, there are background factors that could become obstacles to the token’s growth. Among them, Tangle architecture technology stands out. It is a complex system that allows fast and commission-free transactions between IOTA devices. Despite these advantages, Tangle faces criticism for its level of security.
These alleged vulnerabilities, added to excessive centralization, undermined investor confidence. As such, the token never managed to fully recover from the winter of 2018. Will this be the opportunity to fully recover and break its own price record?
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