Is the recent ecosystem news a reason to consider buying IOTA
IOTA’s price has experienced a significant decline in recent months, despite the network making significant strides in its ecosystem. On Thursday, the token was trading at a critical support level of $0.20, marking a decrease of over 52% from its highest point this year. This also places it near its lowest level since November of the previous year. Throughout the year, IOTA has garnered attention for various important developments.
One of the notable achievements was the selection of the company’s ID platform by the European Commission to participate in the European Blockchain Sandbox. The ID solution offered by IOTA will enable a seamless Web3 identification experience for users. This involves undergoing remote identification with IDnow, which can be tokenized using walt.id and stored in their wallet. Web3 dApps and other online services can then verify the users’ verification status by recognizing this token. HAVN Network and Bloom, an all-in-one wallet, are also part of this sandbox initiative.
Additionally, IOTA recently became the first company in the industry to be registered with the Abu Dhabi Global Market. Shortly after this milestone, the company launched its EVM platform following an extensive testing phase. This EVM allows developers to create decentralized applications on IOTA’s network. Since the launch, Pyth Network has integrated its oracles with IOTA’s network, and LayerZero has also integrated with the platform. However, the performance of IOTA’s token has been uncertain, as investors express concerns about the network’s potential success.
For instance, data shows that ShimmerEVM, IOTA’s canary network, has only attracted seven DeFi developers and has a total value locked of just $4.57 million. Moreover, the industry has become increasingly competitive, with platforms like Base, Blast, and Arbitrum gaining market share.
The decline in IOTA’s token price can also be attributed to the overall negative sentiment in the cryptocurrency industry. Bitcoin has experienced a significant drop to $67,000, and popular altcoins like Pepe and Bonk have also recorded double-digit declines in the past two days.
Analyzing the daily chart, it is evident that IOTA’s price has experienced a sharp decline from its year-to-date high of $0.4210 to $0.20. It is currently hovering near the 61.8% Fibonacci Retracement level and has fallen below both the 50-day and 25-day Exponential Moving Averages (EMA).
The crucial support level for IOTA’s price is currently at $0.1940, which it has managed to remain above since April. A break below this level would indicate the dominance of bears and could potentially result in a further decline to the psychological support level at $0.15.
