- IOTA, a transaction processing token for the Internet of Things (IoT), has risen by more than 400 percent since its nadir in March 2020.
- The price recovery this week led to the formation of the first golden cross on a weekly chart.
- Technically speaking, the crossover of the moving average indicates a bullish continuation in the coming sessions.
IOTA has just printed its first weekly golden cross.
For the 22nd largest cryptocurrency, the 20-week exponential moving average closed this week for the first time since its listing above the 50-week simple moving average. This is a positive development for traders who use such crossovers to measure the performance of an asset / index.
IOTA/USD prints 20-50 MA crossover. Source: TradingView.com
In the meantime, the price for IOTA continued to rise until 2020 and was now 88.90 percent in the previous year. The extremely positive returns follow a wild 427 percent surge from the IOTA Nadir in March 2020 to $ 0.059.
The highest cryptocurrency was at $ 0.314 earlier this week.
Why is IOTA rising?
IOTA's recent upward move appeared as part of a broader bullish rally in the cryptocurrency market.
Almost every token on the top 30 cryptocurrencies list rose due to extreme price speculation spurred by central bank stimulus packages, a falling US dollar, poor government bond yields, and a so-called DeFi craze.
It seems that IOTA only followed the trend until July. Because in the month mentioned, the blockchain project Internet of Things announced a number of important updates. For example, the week before July 7, the IOTA price rose 13 percent after the release Pollen, its first test network for a completely decentralized network.
The launch was an exercise to repair the damage caused by a wallet hack in which hackers stole $ 1.6 million in IOTA tokens.
This is the case when you bring amazing and highly qualified colleagues together with a great and impressively committed community that can always give valuable feedback for improvement: Here's a look at how the new analytics server of ours comes #Cordicide testnet will look! #JOTA pic.twitter.com/hUfG9P6NhS
– Angelo Capossele (@AngeloCapossele) June 29, 2020
By July 2020, TMForum, the global industry association for telecommunications providers, announced that it integrates IOTA solutions to get an immutable record of physical tracking devices. In the same week, the cryptocurrency rose another 9 percent.
Alex Saunders, the CEO / co-founder of Nugget News, said in a tweet that IOTA "fell out of favor" after its hacking incident. Nevertheless, the project remains a large blockchain network for large companies, including Microsoft and Samsung, for IoT-based immutable data solutions.
– Alex Saunders @ (@AlexSaundersAU) July 30, 2020
In technical terms, the Golden Cross formation is launching IOTA to reach new quarterly highs.
IOTAUSD bull targets in the coming daily sessions. Source: TradingView.com
As of now, the pair is trying to close above $ 0.305, a resistance level with the latest records, after which the price has been kept lower. If it exceeded the cap, bulls would target levels between $ 0.382 and $ 0.423.