The Tangle-based IOTA project has made some major developments during 2018 and 2019. Along the way, the cryptocurrency has managed to secure some major partnerships that are designed to improve the use case for IOTA technologies. IOTA is a cryptocurrency that is aimed to create an Internet of Things (IoT) economy in a machine-to-machine world.
In this article, we take a look at some of the reasons why we think IOTA has the potential to increase by 300% by the end of 2019.
For IOTA to increase by 300%, from today’s price, we would need to see IOTA rise and reach the $1.21 level by the end of 2019. This would be the July 2018 high.
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The Partnerships
Along the course of its lifespan, IOTA has managed to secure some high-profile partnerships with some large companies. The majority of the partnerships are largely research based, with the aim to provide proof of concepts for how the companies may use distributed ledger technology in the future.
Here are some of the biggest ongoing IOTA partnerships that have the potential to impact the future price of IOTA.
Crypto Storage AG
Crypto Storage AG became the first company to provide professional and secure storage for MIOTA tokens. They allow users to securely hold their MIOTA tokens with the enhanced security of multi-signature wallets. This new solution will help convince large institutions to invest in MIOTA or even create a partnership with IOTA as they have somewhere safe to keep their tokens.
Volkswagen
A while ago, driverless cars seemed like something from the distant future. However, it’s becoming more and more apparent that driverless cars on our streets may be right around the corner.
IOTA has partnered with Volkswagen to create a proof of concept regarding how the trusted wireless transfer of software can be securely documented using Tangle technology. They aim to release their product, Digital Car Press, which will track data such as mileage for the evaluation of car performance, sometime in Q1 2019.
Others
IOTA has an extensively long list of partnerships with major companies, including Microsoft Azure, IBCS Group, Porsche, Tesla, NEXT Biometrics, Bosch, and Fujitsu.
Removal of the Coordinator
In the opinion of the crypto community, one of IOTA’s biggest drawbacks is how it requires the coordinator to confirm transactions. The fact that all transactions on the IOTA network go through the coordinator has led many people to believe that IOTA is a centralized cryptocurrency project. This is a considerable problem that has caused many potential investors to turn away from the project.
However, the IOTA team has made public steps toward removing the coordinator after this month’s release of the Znet testnet. Znet is a testbed to see how a coordinator-less IOTA may run. With such a large cryptocurrency market cap, it is important for developers to understand the risks involved with removing the coordinator, and Znet provides the perfect solution to get things going.
IOTA without a coordinator will undoubtedly be a more attractive investment to the majority of cryptocurrency evangelists.
Long-Term IOTA Price Analysis
Let us take a look at IOTA against the US Dollar and highlight some potential areas of strong resistance that IOTA will need to overcome before reaching a 300% increase.
Taking a look at the long-term daily chart above, we can see that IOTA has largely been trading sideways for the majority of 2019 between $0.40 and $0.25. The market is currently trading slightly below the initial major resistance level at the 100-day moving average. This level of resistance is further bolstered by a short-term bearish .382 Fibonacci Retracement level (drawn in red) priced at $0.3281. This short-term bearish Fibonacci Retracement level is measured from the November 2018 high to the December 2018 low.
If the buyers can break above $0.32 and continue higher, they will meet more resistance at the 2019 price high at $0.40. This area of resistance contains the short-term bearish .618 Fibonacci Retracement level.
Above $0.50, IOTA/USD will then need to overcome resistance at $0.63 and then at $0.85, which contains the long-term bearish .618 Fibonacci Retracement level. This long-term bearish Fibonacci Retracement is measured from the July 2018 high to the December 2018 low.
If the bullish momentum continues to climb above major resistance at the $1.00 level, buyers will first have to break above the long-term bearish .886 Fibonacci Retracement level at $1.13 before being able to complete the 300% price increase and reach $1.21.
Conclusion
IOTA is a cryptocurrency project that is still in the early stages of its development. However, the long list of partnerships secured by the project speaks volumes to how important the IoT economy will be in the future. If IOTA can establish itself as one of the major IoT companies, then its future will be cemented, thus helping price action to rise.
A 300% price increase for IOTA by the end of 2019 is still on the table. If the market can break above the 100-day moving average and turn bullish, we may see the initial stages of this progression coming to fruition.
