The IOTA price has bounced back in the past few days as investors cheer the latest launch of smart contract features. MIOTA is trading at $1.4900, which is about 20% above the lowest level in November. This rebound brings its total market cap to more than $4 billion, making it the 50th biggest cryptocurrency in the world. It is sandwiched between Gala and Klaytn.
IOTA is a tangle platform that helps companies and other organizations simplify their businesses and handle some of their biggest challenges. For example, a trade organization can reduce paperwork and the costs associated with it.
In an announcement on Thursday, the IOTA Foundation made one of its biggest announcements ever. They launched a sharded, composable smart contracts with optional zero fees. The smart contract technology is what makes it possible for developers to build apps like those in DeFi using platforms like Ethereum and Solana. This is a step in the right direction. The press release said:
“Assembly has created a network with fixed fees as low as $0 thanks to the flexibility to individually define execution fees for smart contracts. With these innovations, Assembly offers builders a powerful toolset to eliminate existing barriers to entry and bring the next billion users to crypto.”
So, is this positive for the IOTA price? While the launch of the smart contracts feature is positive, it does not necessarily mean that the price of MIOTA will keep rising. In fact, in the medium-term, the opposite could happen.
A good example of this is Cardano, which launched its smart contract features recently. Since then, the ADA price has struggled even as Bitcoin and Ethereum have risen to an all-time high. This is simply because it now needs to attract more developers in a relatively crowded place.
IOTA price prediction
The two-hour chart shows that the IOTA price has bounced back in the past few days. Along the way, it has managed to move above the important resistance at $1.4735. This price was the neckline of the inverted head and shoulders pattern. It also moved above the 50-day moving average while the MACD is above the neutral level.
Therefore, at this point, because of the inverted H&S pattern, there is a likelihood that the coin will bounce to the key resistance at $1.71. In the medium-term, however, I have some concerns.