IOTA exploded in price over the last few days, after a major update.
According to a new announcement from the IOTA team, the network has just established a new foundation in the United Arab Emirates.
This new foundation, which is regulated by the Abu Dhabi Global Market, will have an initial investment of $100 million worth of IOTA tokens to support the development of the IOTA ecosystem.
Naturally, the price and other metrics of the IOTA native crypto have become a lot more interesting.
According to the official announcement, the IOTA Foundation will be based in Abu Dhabi.
The announcement also stated that the new IOTA foundation will be focused on building the IOTA ecosystem, particularly in Africa and the Middle East.
And as the popularity of IOT grows, the IOTA foundation will focus on collaborating with investors and partners to adopt IOTA in various projects like smart cities, digital identity, healthcare, mobility, and energy.
The foundation will invest $100 million worth of IOTA tokens in its seed round, which will be vested for four years.
This fund will then be used to support the research, development, and innovation of the IOTA network, as well as to provide grants and sponsorships to the IOTA community.
According to data from CoinMarketCap, IOTA initially surged by more than 40% over the last day, when the announcement was posted on Twitter.
IOTA rallied straight up and hit the $0.2852 high, which is the highest it has been at since February this year (over 10 months ago).
Its market cap also increased by more than 40% over the last day and currently sits at $728 million. But that isn't the strange part.
The trading volumes on the cryptocurrency have exploded by a staggering 12,603% over the last 24 hours and now sit miles above its market cap, at around $879 million.
Overall, IOTA has not had very impressive price action over most of the year.
CoinMarketCap shows that despite the cryptocurrency's short-term success, it has only rallied by 11% or thereabout on a YTD basis.
The cryptocurrency still sits at about a 95% decline from its $5.69 all-time high in 2017.
IOTA also owes some of its long-term bearishness to the challenges it faced in 2020, such as a network shutdown due to a hacker attack and a legal dispute with its former co-founder David Sønstebø in February and December 2020 respectively.
According to data from Coinglass, metrics like Open Interest have spiked on IOTA over the last day.
The data displayed above shows that IOTA's open interest has exploded over the last day, from a $10.23 million low to a whopping $69.18 million.
Interestingly, however, while the Liquidation Data from yesterday shows that many investors bet against IOTA and received unpleasant shocks, the bulls and bears have noted the same amount of liquidations today.
In the charts, we can see that IOTA has had the bullish clouds align for it since late October, as shown below:
IOTA completed spent most of November retesting this trendline, and promptly used the announcement as a trigger to explode upwards.
However, as soon as it broke above $0.2788 (which had been holding it down since November 2022), the bears started to pull it down.
Zooming into the 4-hour chart, we can see that IOTA has declined for a retest of $0.2296 after being rejected from its 24-hour high.
We can also see that this resistance-turned-support has been active since late May.
We can conclude that if a break below this support occurs, IOTA will inevitably decline to $0.2.
However, if a rebound occurs, IOTA might face resistance around $0.2528, before making another attempt at $0.2816, before $0.3281.
Bearish targets: $0.2063, $0.1732
Bullish Targets: $0.2816, $0.3281.
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