IOTA forms rare bullish pattern ahead of rebased upgrade

IOTA token price has moved sideways in the past few days as it formed a rare bullish pattern ahead of the Rebased upgrade. 

IOTA (IOTA) was trading at $0.1670, a few points above the year-to-date low of $0.1360. It remains significantly below last year’s high of $0.6375. 

The coin could experience big gains in the next few weeks as the developers unveil the Rebased upgrade. While the date has not been announced, there are rumors that it will happen later this month. 

Rebased is a major upgrade that will transition the network into a more accessible layer-1 network. It will introduce full decentralization using delegated proof-of-stake technology with over 50 validators. 

This decentralization means that IOTA will introduce staking, where delegators will receive an annual return of 10% and 15%. That will be a significantly higher return than popular proof-of-stake tokens like Ethereum (ETH) and Solana (SOL).

IOTA will also switch to the Mysticeti Consensus, which will make it one of the fastest players in crypto, handling over 50,000 transactions per second. In contrast, Ethereum handles less than 50 TPS, while Solana has less than 3,000. 

IOTA will also become a deflationary as it will introduce a fee burning mechanism. Burning is a process where a crypto project reduces the number of tokens in circulation by sending them to an inaccessible address. 

IOTA price analysis

The daily chart shows that the IOTA token has formed a rare pattern known as a falling wedge. This pattern comprises two descending and converging trend lines. In IOTA’s case, these two lines are about to converge, raising the possibility of a breakout ahead of the upgrade. 

The Relative Strength Index and the MACD indicators have also formed a bullish divergence pattern.

This situation is where these oscillators rise as an asset’s price pulls back. Therefore, the token will likely have a bullish breakout in the coming weeks. The target will be at $0.4175, the highest point in March last year, which is about 150% above the current level.