IOTA has lost ground to its peers once more as cryptocurrencies are weakening across the board today. Some attribute this to the pickup in dollar demand on renewed Fed tightening expectations. This has also weighed on riskier and higher -yielding assets like commodities in anticipation of slower global demand from U.S. tightening.
IOTA is down 5.68% to bitcoin even as the latter has also tanked against most of its peers. However, the hourly chart indicates a pullback to an area of interest at 0.000140, which might hold as resistance from here.
IOTA is 13.53% in the red against the dollar, which is currently drawing strong support from the hawkish FOMC announcement. Not only did the Fed upgrade its growth forecasts even with the impact of the recent hurricanes, but it also set a start date for balance sheet unwinding.
To top it off, the Fed also maintained its forecast for another interest rate hike in December, dousing market expectations that it would sit on its hands for much longer. It doesn’t help that cryptocurrencies are on the back foot after China confirmed that it would shut down bitcoin exchanges in the country.
Lastly, IOTA is down 3.76% against ethereum but is also pulling up from its short-term downtrend. In fact, price has surged past a short-term descending trend line connecting the highs in the previous day, signaling that bulls could still push for gains.
IOTA is an open-source distributed ledger protocol launched in 2015 that goes beyond blockchain through its core invention of the blockless ‘Tangle’. This is a quantum-resistant Directed Acyclic Graph whose digital currency has a fixed money supply with zero inflationary cost.
This uniquely offers zero-fee transactions & no fixed limit on how many transactions can be confirmed per second as scaling limitations have been removed with output growing in conjunction with activity. Unlike blockchain architecture, IOTA has no separation between users and validators. Instead, validation is an intrinsic property of using the ledger, thus avoiding centralization.