IOTA price has nosedived in the past few weeks, joining other cryptocurrencies like Monero and Quant. The token peaked at $0.4205 in March and has now crashed by more than 46% to a low of $0.2242, its lowest level since March 3rd.
Top IOTA news
IOTA’s price action has happened at a time when its ecosystem is not doing well. Data shows that ShimmerEVM is not doing well as the total assets in the ecosystem have retreated. According to DeFi Llama, the total value locked (TVL) in the ecosystem has crashed to $3.68 million from a peak of almost $14 million in 2023.
MagicSea is the biggest dApp in the ShimmerEVM ecosystem with over $2.3 million in assets. It is a DEX that handles several transactions per day. The other top dApps in the ecosystem are Deepr Finance, Accumulator, and Iotabee with just $640k, $399k, and $390k in total assets.
ShimmerEVM is an important part of the IOTA ecosystem as it acts as the canary network. A canary network is a platform where developers first launch their applications before moving them to the main network. A good example of a canary platform is Kusama, which is Polkadot’s canary network.
IOTA token has also crashed because of the ongoing sell-off in the crypto industry ahead of Bitcoin halving, which is set to happen in the next few days. Halving is a situation where the amount of block rewards are slashed by half.
Halving is usually seen as a positive move for Bitcoin and other altcoins, which explains why it has jumped sharply in the past two years. It has now dropped because the halving event has already been priced in by market participants.
It has also nosedived because of the ongoing fear in the market that has pushed most risk assets downwards. For example, the Dow Jones, Nasdaq 100, and S&P 500 indices have been in a strong downward trend in the past few weeks.
A key driver for this trend is the Federal Reserve, which is expected to maintain a hawkish tone in the coming months since US inflation has remained at an elevated level.
IOTA price forecast
Turning to the daily chart, we see that the IOTA token price has crashed hard in the past few weeks. The token crashed from a high of $0.4205 in March to a low of $0.1928. Most notably, the token has retreated below the 50-day and 200-day Exponential Moving Averages (EMA).
IOTA token has formed a bearish pennant pattern, which is a negative sign. It has also moved yo the Weak, Stop & Reverse level of the Murrey Math Lines. Therefore, the outlook for the IOTA token is extremely bearish, with the next point to watch being at $0.1900. A break below that level will see it plunge to $0.1347, its lowest swing on August 17th.
