IOTA price analysis: IOT/USD down 5% amid global crypto sell-off
|- IOTA is under pressure, moving towards $0.94 handle
- The key support comes at $0.89.
IOTA is changing hands at $0.9440, down 5% since the start of the day. The coin moves in sync with other digital assets, experiencing bearish pressure. IOTA is currently the 9th largest coin by market capitalization with the total value $2.6B and the average daily trading volume $36M.
IOTA moved below 50-SMA (1-hour chart), which darkens the short-term technical picture. The coin needs to get back above $0.9754 to get a chance for an extended recovery towards $1.0 with 100-SMA sitting right above this psychologically important level.
On the downside, the support comes at $0.9346 (July 11 low), followed by $0.90. Critical support is created by $0.89, this area stopped the bears twice in the end of June.
IOTA Foundation published an article on system's scalability, where the key advantages to the network are explained. Low throughput and high fees are identified as the main problems of existing blockchain solutions.
"Because IOTA was designed for the Internet of Things, Bitcoin fees were high enough to be prohibitive. The IoT era will usher in hundreds of thousands of small transactions with low or zero value. Fees can’t exist in such a system since they would end up costing more that what is being sent in the first place."
"So, while still a proof of concept, the IOTA network grows while the team works on ways to improve confirmation rates. Stress tests show that the Tangle could be the solution for handling vast amounts of transactions in a decentralized manner. But there is still a problem to solve."
IOT/USD, 1-hour chart
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