IOTA has received a Sharia compliance certificate from the Cambridge Institute of Islamic Finance, aiming to attract Muslim investors. Despite this, its price remains below key support levels.
Points
- IOTA has received Sharia compliance certification.
- The token aims to attract Muslim investors and companies seeking to launch decentralized applications.
- Despite this milestone, IOTA’s price remains below key support levels.
- The broader market shows signs of recovery, with major indices rising.
IOTA recently achieved a significant milestone by receiving a Sharia compliance certificate from the Cambridge Institute of Islamic Finance. This certification positions IOTA as the first company in the distributed ledger technology （DLT） industry to achieve such recognition, making it more attractive to Muslim investors worldwide.
The Sharia compliance certification is expected to enhance IOTA’s appeal to companies seeking to launch decentralized applications, particularly in projects like halal meat verification. Additionally, this move comes a few months after the IOTA Foundation became the first to be regulated by the Abu Dhabi Global Markets, further solidifying its credibility in the Middle East.
However, despite this milestone, IOTA’s price has not seen significant movement. It remains below key support levels, currently sitting below the crucial support level of $0.1341, which was its lowest swing in August last year. The token also remains below the 50-day Exponential Moving Average （EMA）, indicating that bearish sentiments still dominate the market.
The recent rebound in the broader market, driven by expectations of Federal Reserve interest rate cuts, has not significantly impacted IOTA. Japan’s Nikkei 225 index rose by 10%, and futures tied to the Dow Jones, Nasdaq 100, and S&P 500 indices rose by over 80 basis points. These assets rose as investors started preparing for Federal Reserve interest rate cuts. Analysts at UBS, ING, and other banks like Jefferies and Goldman Sachs have noted that the Fed will start cutting rates soon. Despite these positive market trends, there is a risk that the ongoing recovery is part of a dead cat bounce, a situation where a falling asset has a temporary rebound.
解説
- The Sharia compliance certification could open new markets for IOTA, particularly among Muslim investors and businesses in the Middle East.
- The token’s current price performance remains subdued, reflecting broader market conditions and investor sentiment.
- IOTA’s position below key support levels and moving averages indicates ongoing bearish pressure.
- The broader market’s recovery is driven by expectations of interest rate cuts, but caution is advised as the rebound may be temporary.
In conclusion, while IOTA’s Sharia compliance certification is a notable achievement that could attract new investors and use cases, the token’s price performance remains a concern. The broader market shows signs of recovery, but the sustainability of this rebound is uncertain. Investors should keep a close eye on key support levels and market trends to make informed decisions.