IOTA price plunges as new governance vote starts

IOTA price fell for two consecutive days, erasing some of the gains made late last week, as token holders initiated a key governance vote. IOTA ( IOTA ), a leading distributed ledger network, dropped to $0.30, down by over 53% from its highest level in December. This decline coincided with the ongoing sell-off of other cryptocurrencies like Bitcoin ( BTC ) and Solana ( SOL ). The decline came as IOTA token holders began voting on an ambitious growth initiative that includes features like public awareness campaigns and on-chain network metrics. If the proposal passes, the 44.8 million tokens held by Tangle DAO will be unlocked and used to popularize the network. You might also like: 3 potential catalysts to reverse crashing Bitcoin and altcoin prices The voting process, which began recently, will continue for seven days and conclude on Jan. 20. Early data indicates that 97% of voters support the proposal, though this figure could change as voting progresses. [IOTA Governance] 🗹 Voting is now open for $IOTA token holders on the new proposal IGP – 0007 " #IOTA Growth Initiative" to raise public awareness and on-chain network metrics.🗳️The 7-day commencing phase starts now, Jan 13th at 3PM CET. Full proposal ⤵️ https://t.co/CKVhb2hW8J pic.twitter.com/uSSOcwvCD6 — IOTA (@iota) January 13, 2025 This proposal follows a recent vote by the community on the Rebased proposal . The Rebased upgrade will introduce new features to the IOTA ecosystem, including parallelized MoveVM and EVM, full decentralization, 50,000 transactions per second, and staking yields of 10% to 15%. The upgrade is expected to enhance the network’s functionality, enabling developers to build decentralized applications and positioning IOTA as a competitor to blockchains like Solana and Ethereum. However, IOTA’s previous attempts to launch an independent chain have faced challenges. For example, its canary network, Shimmer, has only attracted just $728,000 in total value locked. IOTA price analysis IOTA price chart | Source: crypto.news The daily chart shows that IOTA peaked at $0.6280 in December but has since dropped to $0.30. Despite the decline, it remains above its 50-day and 100-day Exponential Moving Averages. The token has also formed a slanted triple-bottom pattern, with the neckline at $0.400. A triple-bottom is generally considered a bullish chart pattern. While IOTA is currently in a bearish trend, a rebound to $0.400 remains possible. However, the odds of a rebound would decrease if the price falls below the 50-day EMA and the ascending trendline. In such a scenario, IOTA could drop to the psychological support level at $0.2500. You might also like: Could IOTA price surge to $1 ahead of the Rebased upgrade?