IOTA price analysis: Was it a bull trap? IOTA drops 10%; meet MicroHash, the first Qubic smart contract
|- IOTA retraced higher last week stepping above $0.64 but the declines today are testing the major support.
- MicroHash is the first smart contract to be launched on IOTA core in collaboration with the Qubic protocol.
IOTA is gasping and reaching out for air as it drowns in the sea of red waters. The recent upside movement appears to have been nothing but a bull trap. IOTA is down more than 10% on Monday although last week, it swung nicely upwards from the support at $0.53 and jumped slightly above $6.4. The weekend trading battled and managed to keep the price above $0.58 but the bears have increased their grip on the market leading to a drop that has canceled all the gains accrued since the mid-last week.
The IOTA community is celebrating the first smart contract program developed on IOTA’s Qubic platform. However, the program required the TOQEN protocol in order to execute despite the fact that it was built on IOTA’s blockchain. MicroHash becomes the first smart contract to be launched on the 4th layer of IOTA’s smart contract system. The first layer is the IOTA core, the second is the Qubic lite while the third layer is the TOQEN. The press release explained why smart contracts require the fourth layer to run stating that:
“Once value transactions were live in the TOQEN network, enabling smart contracts was actually super easy. Nothing more was required than to simply allow qubics to hold TQN. Since qubics are decentralized consensus-based entities, their TQN holdings themselves are subject to consensus. This is basically the definition of a smart contract.”
In the meantime, IOTA is testing the primary support at $0.53. The sharp descent broke past the trendline support. Similarly, the hourly 100SMA failed to hold $0.585. There was a bounce from the support at $0.53 but the bulls lack the momentum to face the resistance at $0.56. IOT/USD is dancing with $0.551 while lower corrections are imminent unless a breakthrough above $0.56 occurs. The MACD is strongly negative to show that the sellers have the control. The primary supported must be protected by all means in order to prevent dips towards $0.50.
IOT/USD 1-hour chart
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