IOTA (MIOTA) acts as an overseer of transactions between the devices and machines that make up the Internet of Things. It is the bookkeeper of IoT, offering solutions to the scalability and transaction fees that remain a problem in blockchain technology.
With other decentralized and distributed protocols, transactions are verified with a Directed Acyclic Graph (DAG). IOTA on the other hand, offers a similar (perhaps better) called Tangle.
IOTA Solves The Problem of Blockchain Scalability
As an IoT platform, IOTA will need to have billions of transactions taking place at once across the network, which is designed to scale its power in tandem with its size. Transactions on IOTA are linked with two additional transactions that verify each other. All past transactions are connected to future transactions, thus making the chain of events immutable.
Every new device added to the network contributes to the computing power and consensus method. This solves the scalability problem naturally as more devices are brought onboard.
However, it has a limitation because blockchain is vulnerable if one party has 51% of the network. The Tangle is more vulnerable than a regular blockchain network because a participant needs 34% of the network computing power to crack the system.
Though Tangle is an innovative technology, MIOTA is still new, so we cannot predict the future because the coin does not have too many use cases. It aims to create a platform for machine-to-machine transactions that share and allocate all the valuable resources effectively.
At the time of writing, IOTA was trading around $0.637. Interestingly it took support at around $0.58 and seems like it may break this level soon. If it breaks the level, it will be hard to mark the next support level.
RSI is 36, indicating bearish momentum. The MACD line is neutral on the daily chart. Moreover, Bollinger Bands is also showing bearish momentum.
Could we find a considerable sell-off soon? Let’s analyze the weekly chart for a long-term view.
On the weekly chart, the MIOTA price has been consolidating between $0.84 and $0.64. We think this sideways movement will continue for this year because technical indicators also suggest bearishness.
The candlesticks are in the lower half of the Bollinger Band, while RSI is 39 and MACD is also trading below Signal Line. The future of IOTA will depend on market adaptation.
We do not think it is the ideal time for a short-term investment in MIOTA, but if you believe in the fundamentals of this cryptocurrency, then you can start accumulating some coins for the long term.