IOTA Bulls Return as €100K ReBased Fund Sparks Price Increase

• The Rebased network upgrade promises enhanced functionality, making IOTA a decentralized layer-1 network with features surpassing those of Sui and Polkadot.
• The IOTA Foundation introduced a funding initiative to support developers building network-enhancing use cases, such as decentralized identity systems and supply chain monitoring.

The IOTA price demonstrated another day of upward momentum following developer announcements about Rebased, which will become the next upgrade for their network. The token price rose to $0.2500 on Tuesday to achieve its largest monthly gain of 40 percent since the start of this month.

IOTA Foundation Announces Major Update

The IOTA Foundation established a funding program worth up to €100,000 ($103,398) specifically for developers who work toward developing the network structure. Project implementation will become easier through financial aid while recipients obtain access to marketing help and strategic direction with technical knowledge provided by professionals.

Moreover, the program works to develop use cases that include decentralized identity systems alongside supply chain monitoring and real asset digitalization, according to a blog post recently. Hence, the foundation is engaged in targeted projects and solutions that strengthen data integrity together with identity management and compliance systems. Currently, the program maintains its execution until the end of December this year.

Among the essential elements of the major software update known as Rebased stands the Business Innovation Program as a primary feature currently undergoing testing, as noted in our previous article. The upgrades will turn IOTA into a decentralized layer-1 network that brings enhanced functionality beyond what Sui and Polkadot deliver.

Parallel processing functions for Ethereum Virtual Machine (EVM) and MoveVM will be implemented through the upcoming upgrade to enhance the network scalability. IOTA has designed its infrastructure for 50,000 TPS capacity meaning it surpasses the current transaction speed of Solana (under 5,000 TPS) and TRON (under 100 TPS).

IOTA holders will receive elevated staking benefits of 10% to 15% which exceeds the offered rewards from well-known cryptocurrencies such as Ethereum and Solana. Whilst, the operational testnet phase of Rebased draws participating validators that include AllNodes, Stakefish, and Stardust Staking.

Technical Analysis & IOTA Price Action

The crypto market data shows IOTA recovering from its recent price bottom that reached $0.1750 during the previous week. At $0.2500, the token established an essential barrier against the 200-day Exponential Moving Average (EMA).

Source: TradingView

Industry analytical tools indicate additional price enhancement prospects. The price extends beyond its 78.60% Fibonacci retracement threshold at $0.2150, while such movement creates a falling wedge pattern through converging trendlines. When technical lines merge toward each other, the risk of a breakout becomes more probable, as mentioned in our previous story. 

A consistent upward momentum in IOTA could lead the currency to $0.3655, which matches the 50% Fibonacci retracement level. The middle boundary of Andrew’s Pitchfork tool used for technical projection identifies $0.3655 as this price point.

However, after the initial boost, the token suffered a significant loss today. As of writing, the IOTA token price dipped 5.58% to $0.2304 on Wednesday, February 12, owing to volatility in the overall crypto market. 

Meanwhile, the trading volume plunged 9%, reaching $41.52 million, signaling lessening market interest. Thus, the future movements of IOTA price depend heavily on both rising buyer interest in Rebased and overall market trends for cryptocurrencies.