IOTA has experienced a significant decline in price over the past few months despite the network announcing several key developments in its ecosystem. The token hit a major support level at $0.20 on Thursday, marking a decrease of more than 52% from its peak this year and bringing it close to its lowest point since November. Despite this, IOTA has continued to make headlines.
Recently, the company revealed that its ID platform was chosen by the European Commission to participate in the European Blockchain Sandbox. This ID solution aims to streamline the Web3 identification process, starting with remote identification through IDnow, tokenizing the process with walt.id, and storing it securely in users’ wallets. This token can then be utilized by Web3 dApps and online services to verify user credentials. Other partners in this sandbox include HAVN Network and Bloom.
In a significant milestone a few months ago, IOTA became the first company in the industry to be registered with the Abu Dhabi Global Market. Shortly after, the company launched its EVM platform following extensive testing, enabling developers to create decentralized applications on the IOTA network. Subsequently, Pyth Network introduced its oracles on IOTA, and LayerZero integrated with the platform.
Despite these advancements, investor confidence in IOTA has wavered, possibly due to concerns about the network’s future success. For instance, the ShimmerEVM canary network, a part of IOTA, has only attracted 7 DeFi developers and has a modest total value locked of $4.57 million. Moreover, the industry has seen increased competition from platforms like Base, Blast, and Arbitrum.
In addition to these factors, IOTA’s token price has been impacted by the overall negative sentiment in the cryptocurrency market. Bitcoin and other popular altcoins have also experienced significant declines recently. Analyzing the daily chart, we observe a sharp drop in IOTA’s price from its yearly high of $0.4210 to $0.20. The token is currently near the 61.8% Fibonacci Retracement level and has fallen below the 50-day and 25-day Exponential Moving Averages (EMA).
As IOTA’s price hovers above the critical support level at $0.1940, which has held since April, a break below this level could indicate further downward movement towards the psychological support at $0.15, signaling bearish dominance in the market.