The recent crash did not spare any cryptocurrency on the market. Most tokens lost an average of -50% in valuation. IOTA is not different, as its prices sank from a high of $1.6 to a current price of 0.33. This almost 80% price depreciation will definitely take a big toll on IOTA investors. Today, prices have 2 case scenarios and might go either way. A big determinant of how things will progress is the crypto market sentiment as a whole. Is IOTA price today a good buy? Is IOTA a good investment at current prices or will IOTA crash further? Let’s analyze 😉
What is IOTA Crypto project?
IOTA is a distributed ledger system, to put it simply. Most cryptocurrency exchanges use one of two blockchains, whereas IOTA does not. Tangle, on the other hand, is the underlying technology. Tangle, which functions similarly to IOTA’s blockchain, makes use of nodes to conduct network transactions.
The platform’s founders envisioned it as the go-to network for enabling transactions between IoT smart devices. IOTA is poised to become significant in the future years, because of the system’s exponential expansion.
Why did IOTA crash?
In a previous article, and despite the rising crypto market, we anticipated a crash that would lead IOTA prices down from over $1.5 to under $0.5$. Today, we see the latter happening, with current prices around $0.33. Many factors came into play for IOTA to crash:
All the above factors contributed to the fall of IOTA prices. In figure 1 below, we can see how the recent crash affected IOTA prices.
Is IOTA Crash over?
If we look at the indicators of the Iota price, we can see that there is still enough room to go down. Because of this, these indicators are telling us that the price is likely to fall further. The relative strength index (RSI) is not yet in oversold territory (figure 1). MACD is not announcing a bullish crossover yet either, which is why things are looking bleak there as well. If we look at the current weekly candle, we can also see that this does not announce a trend reversal either. The result of our assessment, based on the indicators and the current weekly candle, is that the crash is not over yet. We expect the iota price to fall further and break the $0.32 support.
This is of course taking into consideration that the crypto market as a whole is still down.
IOTA Price Prediction – How low will IOTA price go?
If IOTA price comes to break the $0.32 support, which is very likely, then we anticipate that the price will drop to the next $0.225 support. This would be the least we expect from the Iota price. It is also possible for the price to break the $0.225 support and subsequently drop to the $0.15 support. However, this will need to be watched more closely once the price scales the $0.225 support.
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