IOTA, the native cryptocurrency of an open-source Distributed Ledger Technology (DLT) platform, has emerged as the best-performing altcoin over the past 24 hours. During this period, the asset’s value has surged by 40%, and it is now trading at $0.48.
As an altcoin that has been out of the spotlight for a while, many may wonder why the token has suddenly appreciated in value. This on-chain analysis reveals the reasons for this and what could be next for cryptocurrency.
IOTA Sees Surging Demand as Legacy Cryptos Lead the Way
According to BeInCrypto’s analysis, IOTA stands out as the best-performing altcoin over the past 24 hours. This is largely due to the market’s growing interest in older cryptos from previous cycles. Assets such as VeChain (VET), Hedera (HBAR), and Algorand (ALGO) have received significant bids over the period, with many of these tokens having been launched between 2017 and 2020.
In addition to the growing demand for older cryptos, IOTA’s strategic shift to become a Real World Asset (RWA) project has strengthened its position.
Furthermore, the start of the Rebased governance vote, which aims to reduce transaction costs, increase capacity, and introduce Move-based smart contracts on a parallel DAG-based Layer-1 ledger, further reinforces the bullish outlook for IOTA.
From an on-chain perspective, data from Santiment shows that IOTA volume has risen to $675.51 million. This value is the highest since November 2017, validating the notion that the cryptocurrency is receiving a lot of bids.
Volume from IOTA. Source: Santiment
IOTA Gains Momentum with Rising Volume and Open Interest
If the volume continues to rise along with the price, IOTA could be worth over $0.48 in a few days. In addition to the volume, IOTA’s Open Interest (OI) also rose to $72.37 million. OI measures the level of speculative activity surrounding a cryptocurrency.
A high OI usually indicates that significant capital is flowing in, with new long positions being established. This suggests that traders are increasingly confident in the market’s upward movement, contributing to a bullish sentiment.
On the other hand, a low OI implies that traders are withdrawing money and closing existing positions. Therefore, the increase in the altcoin’s OI reflects increasing participation, indicating that the altcoin’s price may continue to rise.
Open Interest from IOTA. Source: Santiment
IOTA Price Prediction: Price Comes Close to $1?
On the IOTA/USD chart, the Bull Bear Power (BBP) shows a notable increase. BBP compares the strength of buyers with that of sellers. When it rises with a green bar on the histogram, it indicates that the bulls are in control.
On the other hand, if the BBP is negative, it means that bears have the upper hand, and prices may rise. For IOTA, it is the latter case. Furthermore, the Money Flow Index (MFI), which shows the level of capital inflow into a cryptocurrency, has risen, indicating that buying pressure around the token is very much present.
If this continues, the IOTA price could rise to the high point of the last candlestick’s wick at $0.53. In a highly bullish scenario with increasing demand, it could approach $1.
IOTA Daily Analysis. Source: TradingView
On the other hand, if profit-taking becomes a factor, IOTA could lose its position as the best-performing altcoin and drop to $0.28.
The article IOTA Becomes Top-Performing Altcoin Up 40% appeared first on BeInCrypto.
