IOTA price plunges as new governance vote starts

The IOTA price has fallen for two consecutive days, erasing some of the gains made late last week as token holders launched a key governance vote.

Leading distributed ledger network IOTA (IOTA) has fallen to $0.30, down over 53% from its December high. This decline coincided with the ongoing sell-off of other cryptocurrencies such as Bitcoin (BTC) and Solana (SOL).

The drop comes as IOTA token holders began voting on an ambitious growth initiative that includes features such as public awareness campaigns and on-chain network metrics. If the proposal is accepted, the 44.8 million tokens held by Tangle DAO will be unlocked and used to popularize the network.

The voting process, which started recently, will last seven days and end on January 20. Early data shows 97 percent of voters support the proposal, but that figure could change as voting progresses.

This proposal follows a recent vote by the community on the Rebase proposal. The Rebase upgrade will introduce new features to the IOTA ecosystem, such as parallelized MoveVM and EVM, full decentralization, 50,000 transactions per second, and 10% to 15% return on staking.

The upgrade is expected to increase the functionality of the network, enable developers to create decentralized applications, and position IOTA as a rival to blockchains such as Solana and Ethereum.

However, IOTA’s previous attempts to establish an independent chain have run into difficulties. For example, the total value of canary network Shimmer was only $728,000.

IOTA price analysis IOTA price chart | Source: crypto.news

The daily chart shows that IOTA rose to $0.6280 in December but has since fallen to $0.30. Despite the decline, it remains above the 50-day and 100-day Exponential Moving Averages.

The token also formed a tilting triple bottom pattern with the $0.400 neckline. A triple bottom is generally considered a bullish chart formation.

Although IOTA is currently in a downtrend, a recovery to $0.400 remains possible. However, if the price falls below the 50-day EMA and the ascending trend line, the chances of recovery will decrease. In such a scenario, IOTA could fall to the psychological support level of $0.2500.