IOTA becomes Sharia compliant as its price stalls

IOTA price rose on Tuesday, joining other cryptocurrencies that bounced back after falling sharply on Monday. 

The IOTA (IOTA) token rose to an intraday high of $0.1290, 25% higher than this week’s low of $0.1028. 

Cryptocurrencies have recovered

Its rebound mirrored that of other cryptocurrencies that bounced back on Monday. Bitcoin (BTC), which traded as low as $49,000 on Monday, Aug. 5 rose to $56,000 while Ethereum (ETH) spiked from $2,118 to over $2,500. 

The recovery was also in line with the happenings in the stock market as Japan’s Nikkei 225 index rose by 10%. In the US, futures tied to the Dow Jones, Nasdaq 100, and S&P 500 indices rose by over 80 basis points. 

These assets rose as investors started preparing for Federal Reserve interest rate cuts. Analysts at UBS, ING, and other banks like Jefferies and Goldman Sachs have noted that the Fed will start cutting rates soon.

Jefferies expects that the bank could deliver an emergency cut this month while Wharton University’s Jeremy Siegel has advocated for a 75 basis point cut.

Still, there is a risk that the ongoing recovery is part of a dead cat bounce, a situation where a falling asset has a temporary rebound.

IOTA becomes Sharia-compliant

IOTA token also rose after receiving a Sharia compliance certificate from the Cambridge Institute of Islamic Finance. It has become the first company in the distributed ledger technology industry to receive the certification.

IOTA hopes that this certification will make it more attractive to Muslims from around the world. It also believes that the network will be selected by companies seeking to launch their decentralized applications. For example, IOTA’s technology could be used in projects like halal meat verification.

The certification came a few months after IOTA Foundation became the first to be regulated by the Abu Dhabi Global Markets. 

The Middle East region is growing at a rapid pace as countries continue attracting foreign investments. In a recent report, CNBC noted that over 6,700 millionaires will move to the region this year. Most of these people are coming from countries like Russia and China. 

These people are favoring Abu Dhabi and other Middle East countries because of their lower taxes and privacy factors.

IOTA price remains below key support

IOTA token remains below key support levels despite the recent rebound. It sits below the key support level at $0.1341, its lowest swing in August last year. 

It also remains below the 50-day Exponential Moving Average, meaning that bears are still in control. Therefore, the token could resume the downward trend as sellers target this week’s low at $0.103. 

On the positive side, IOTA price has formed a hammer candlestick pattern, which is a popular reversal sign.