In particular, other cryptocurrencies such as Bitcoin and Ethereum are observed to be experiencing a major recovery. Bitcoin dropped to $49,000 on Monday, August 5, and then rose to $56,000. Ethereum rose from $2,118 to over $2,500.

This recovery was in line with broader stock market movements, such as Japan’s Nikkei 225 index rising by 10%. In the USA, futures based on Dow Jones, Nasdaq 100 and S&P 500 indices increased by more than 80%. This shows that investors are pricing in their expectations for interest rate cuts by the Federal Reserve.

Analysts at major banks such as UBS, ING, Jefferies and Goldman Sachs predict that the Fed will reduce interest rates soon. While Jefferies stated that an emergency interest rate cut could be made this month, Jeremy Siegel from Wharton University suggested a 75 basis point cut.

However, there are also risks as to whether the current recovery is a temporary rebound, known as a “dead cat bounce”. “Dead cat bounce” refers to the situation where an asset experiences a temporary recovery after a decline.

Such situations usually involve a short-term recovery before the asset reverses its long-term downtrend. IOTA token also attracted attention with the Sharia compliance certificate it received this week. This certification from the Cambridge Institute of Islamic Finance makes IOTA the first company in the distributed ledger technology (DLT) industry to receive such approval.

This certificate is expected to make IOTA more attractive to Muslims around the world. With this certificate, IOTA hopes to increase its chances of being preferred by companies that want to launch decentralized applications. For example, IOTA’s technology can be used in projects such as halal meat verification.

The certification comes a few months after the IOTA Foundation became the first organization regulated by Abu Dhabi Global Markets. The Middle East region is becoming a rapidly growing investment hub, with more than 6,700 millionaires expected to move to the region this year.

Most of these people come from countries such as Russia and China and prefer Abu Dhabi and other Middle Eastern countries due to lower taxes and privacy factors.

Despite this, the IOTA token remains below major support levels despite the recent recovery. It is below the major support level at $0.1341, marking the low seen in August last year.

Additionally, the fact that it remains below the 50-day Exponential Moving Average shows that the bears are still influential in the market. Therefore, there is a possibility that the IOTA token will continue its downtrend with sellers targeting this week’s lows.

However, IOTA price is signaling a reversal with technical indicators such as the hammer candlestick formation. Hammer candlestick usually signals the beginning of a trend reversal, which can be a positive sign for IOTA’s future price movements.