🌎 IOTA Price Declines Despite Key Ecosystem Developments

IOTA Price Analysis

The IOTA price has experienced a significant decline over the past few months despite several key ecosystem developments. As of Thursday, the token was trading at a crucial support level of $0.20, marking a decline of over 52% from its highest point this year. It is also near its lowest level since November of last year.

This year, IOTA has been in the spotlight for various reasons. On Thursday, the company announced that its ID platform has been chosen by the European Commission to participate in the European Blockchain Sandbox. IOTA’s ID solution aims to provide a seamless experience for Web3 identification. Users will undergo a remote identification process with IDnow, which can be tokenized using walt.id and stored in their wallet. This token can then be recognized by Web3 dApps and other online services to confirm user verification. Partners in this sandbox include HAVN Network and Bloom, an all-in-one wallet.

A few months ago, IOTA became the first company in its industry to be registered with the Abu Dhabi Global Market. This milestone came shortly after the launch of IOTA’s EVM platform, which had been in testing for several months. With this EVM, developers can build decentralized applications on IOTA’s network. Following this announcement, Pyth Network introduced its oracles on IOTA’s network, and LayerZero integrated with the platform.

Despite these developments, the IOTA token has seen volatility as investors question the network’s potential for success. For instance, data indicates that ShimmerEVM, IOTA’s canary network, has attracted only seven DeFi developers and has a total value locked (TVL) of just $4.57 million. The cryptocurrency industry has also become highly competitive, with platforms like Base, Blast, and Arbitrum gaining market share.

IOTA Price Forecast

The broader sentiment in the crypto industry has also impacted IOTA’s price. Bitcoin has fallen to $67,000, and popular altcoins like Pepe and Bonk have dropped by double digits over the past two days. On the daily chart, the price of IOTA has sharply declined from its year-to-date high of $0.4210 to $0.20. It is currently near the 61.8% Fibonacci Retracement level and has fallen below the 50-day and 25-day Exponential Moving Averages (EMA).