The IOTA price has crawled back in the past few days as sentiment in the crypto industry has improved and as the market waits for the upcoming Rebased upgrade.

The recent IOTA coin price action has largely mirrored that of other cryptocurrencies that have stabilized in the past few weeks.

The IOTA price has crawled back in the past few days as sentiment in the crypto industry improved and as the market awaited the upcoming Rebased upgrade. The IOTA token traded at $0.2025 on Friday, up slightly from the year-to-date low of $0.1600.

IOTA Rebased to Be A Catalyst

The recent IOTA price action largely mirrored that of other cryptocurrencies which had stabilized in the past few weeks.

The upcoming Rebased upgrade could potentially have a bullish impact on the IOTA token. Unveiled in late 2024, the upgrade aims to transition IOTA into a more developer-friendly network radically.

It will see IOTA transition from the current centralized network into a fully decentralized blockchain using the delegated proof of stake (DPoS) model with at least 150 validators.

The introduction of the DPoS model will benefit IOTA holders as they can earn rewards through staking. As such, current holders who don’t get any return to date will start receiving an APY of between 6% and 7%.

Most importantly, IOTA Rebased will introduce smart contracts to the network, allowing developers to build decentralized applications. If implemented well, these smart contracts will help transform IOTA from a complex distributed ledger network into a real Ethereum and Solana rival.

This implementation will be crucial as there are many blockchain networks with smart contract features that have struggled to grow. A good example of this is IOTA’s Shimmer network, which has attracted less than $1 million in assets.

IOTA might consider emulating Sonic, which recently rebranded from Fantom. Sonic has become one of the biggest layer-1 networks less than 3 months after the rebrand.

It is unclear when the Rebased upgrade will launch, but the odds for a 1st quarter launch have faded. As such, there is a likelihood that it will happen in either Q2 or Q3 once the testing process ends.

IOTA Price Technical Analysis

The daily chart shows that the IOTA token peaked at $0.6385 in December and then retreated to $0.1590 earlier this month. On a positive note, there were signs that the coin may have reached its bottom, which may lead to more gains in the coming weeks.

IOTA coin has formed a falling wedge pattern, a popular bullish sign, characterized by descending and converging trendlines. It has also moved above the upper side of this pattern.

Oscillators had formed a bullish divergence pattern. For example, the Awesome Oscillator is set to cross the zero line, while the Percentage Price Oscillator points upward.

Therefore, the outlook for IOTA is bullish, with the next key level to monitor around $0.3705, the 50% retracement point, which is about 82% above the current level.