IoTeX price popped by 30%. Is it safe to buy IOTX?

The IoTeX (IOTX/USD) price jumped sharply on Tuesday as investors continued buying the dips of select altcoins. IOTX rose to an intraday high of $0.1152, which was the highest level since January 22 this year. That price was about 82% above the lowest level this year.

What is IoTeX?

IoTex is a blockchain project that is in the Internet of Things (IoT) industry. Its overall goal is to use blockchain in a bid to connect the billions of devices that are in existence today. These devices include things like computers and smartphones. 

Using its technology, these devices will be able to communicate with each other and with humans using smart contracts. As a result, machines will be able to do specific tasks while automated contracts will trigger buying and selling or other tasks. It will also be able to connect with other cryptocurrencies.

IoTeX is also an upcoming player in the Decentralized Finance (DEFI) industry. According to DeFi Llama, there are now about 10 verified DeFi apps built using the network. They have a total value locked of $249 million, making it bigger than several well-known platforms like Kusama, Theta, and Stacks. 

Some of the biggest DeFi apps built using IoTeX are Filda, ioTube, Mimo, and ZoomSwap. Therefore, since IoTeX is a relatively new blockchain project, its price is probably rising because of expectations that its ecosystem will keep rising.

Another possible reason why the IoTeX price is rising is that the developer announced the launch of the Pebble Pioneer NFT. 

IoTeX price prediction

The four-hour chart shows that the IOTX price has been in a strong bullish trend in the past few days. As a result, the coin managed to move above the ascending channel pattern that is shown in red. It has also moved above the 25-day and 50-day moving averages. It is now slightly below the 50% Fibonacci retracement level.

Therefore, there is a likelihood that the IoTeX price will retreat and retest the 38.2% Fibonacci retracement level at $0.097. This price action will happen as investors take profit considering that it has already jumped by more than 70% from its year-to-date low.

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