IOTA price saw a high volume surge that took the altcoin to a near 1-year high, but are there reasons to support further upside?
IOTA, an open-source distributed ledger and cryptocurrency focused on the Internet of Things (IOT), saw its native IOTA token rally 43% on Nov.
According to a press release from the project, the foundation will be seeded with $100 million in IOTA tokens, which will be vested over a four-year period and traders clearly perceived the announcement and funding plan as a short-term bullish catalyst.
Historically, ecosystem and developer incentives by blockchain and DeFi protocols tend to attract liquidity to the project and boost market participant sentiment.
In August 2021, Avalanche’s AVAX token went on a 1,400% tear after the announcement of the Avalanche Rush DeFi incentive program.
A similar outcome was seen with Trader Joe’s JOE token in the months following December 2022 after the DeFi protocol announced plans to establish a presence on Arbitrum.
Currently, the Arbitrum ecosystem is hosting liquidity and developer incentives and these initiatives align with the recent 62% resurgence in ARB token price.
Was IOTA’s price move another sell-the-news event?
On Nov.
$IOTA
— Coinalyze (@coinalyzetool) November 30, 2023
Funding Rate and Long/Short ratio at historical low! pic.twitter.com/wloZNoLMxu
Traders often interpret funding rates and longs-to-shorts ratios as sentiment gauges and indicators of how active investors are positioned.
from Cointelegraph.com News Ray Salmond
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