Bitcoin
BTC$61 250.62

-2.84%

Ethereum
ETH$4 042.30

-2.55%

Binance Coin
BNB$482.49

0.74%

Cardano
ADA$2.16

-0.54%

Tether
USDT$1.000245

0.03%

Solana
SOL$204.24

0.80%

IOTA (MIOTA): Good Enough For Shorting Only


While IOTA is still ranked 25th, many cryptocurrencies are doing way better than a coin that supports the distributed ledger for the Internet of Things  - both in terms of the quality of price action and the progress in development of its fundamentals.

Fundamentally, the ecosystem behind MIOTA is considered to be overly complex and largely underdeveloped, while it is also characterized by many as being highly centralized at this point. Perhaps the introduction of Coordicie, which is a network that is run without a coordinator, could improve the state of this ecosystem, but it is still too far from being implemented. On the business side, IOTA is known for having attracted the interest of big players in the automobile industry, namely Jaguar, but that cooperation appears to have stalled.

Evidently, these are the reasons why traders are losing interest in MIOTA as its average daily trading volume from the past three months have plummeted from $50 million to $10 million, while the coin itself still retains a relatively high market capitalization of $522 million and the presence on all major exchange platforms.

MIOTA will continue to slide downhill, eventually


A quick glance at the chart of MIOTA from last year would be enough to see that price has been moving from one lower high to another with the tediously long periods of consolidation. The situation turned to worse when the coronavirus panic had affected the market - the price of IOTA hit rock bottom at $0.079 on March 13, its current all-time low. 

1-week MIOTA/USDT chart

During that period, MIOTA lost 73% of its value, arguably the most among the high-ranked cryptocurrencies. Naturally, it should have been followed by the recovery, and it did in a long seven weeks, but the overall outlook with regard to this coin remains mostly negative.

Considering how large the buying volume was during the recovery period - it is comparable to the one that occurred during the bullish rally of December 2019 - February 2020 - the price action responded very weakly, having kept all those who bought on the first pullback in the bear zone for the three long weeks.

MIOTA did climb to the point of total recovery nonetheless, but the behavior of MACD shows that this kind of price movement is characteristic of an entry into a consolidation zone rather than the preparation for a trend reversal.

Please note that the oscillator hasn't ascended above zero, which is a borderline between the bearish and the bullish territory, since 2018 with all its bullish rallies. This could only mean that there’s a total absence of strong buyers in the IOTA market, especially in the current situation. Therefore, despite the fact that the MACD lines are about to cross to the upside, the price move that will follow won’t carry any strength, as it often happened before, when the coin was consolidating.

Right now, the currency has approached the first major resistance zone after the all-time low that also coincides with the middle line of Bollinger Bands, from which the price should push away to the downside, as it usually happens to the weaker coins.

There is a possibility of IOTA making another 26% dash to the upside, being incentivized by Bitcoin halving, but then it will bump against the macro resistance $0.24, which will constitute a perfect position for beginning to short this currency.

Author: Alex Paulson for Crypto-Rating.com

Related

IOTA Was Caught In a Bad Moment
IOTA Was Caught In a Bad Moment
IOTA (MIOTA): The Bulls Are Upping the Tempo
IOTA (MIOTA): The Bulls Are Upping the Tempo
IOTA (MIOTA) Luring Traders Into Bear Trap
IOTA (MIOTA) Luring Traders Into Bear Trap
IOTA: Hack Resolved But the Price Plummets
IOTA: Hack Resolved But the Price Plummets
IOTA: Wallet Hack Could Threaten the Price
IOTA: Wallet Hack Could Threaten the Price
Fundamentals might catalyze MIOTA's price in 2020
Fundamentals might catalyze MIOTA's price in 2020
What to expect from IOTA in the future?
What to expect from IOTA in the future?

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 65.2% 76 $61 250.62 -2.84% -0.77% $1 154 674 094 562 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 72% 57 $4 042.30 -2.55% 5.39% $477 150 448 535 ETH 7 days price change
3 Binance Coin (BNB) BNB Binance Coin predictions 72% 60 $482.49 0.74% 2.70% $80 480 315 639 BNB 7 days price change
4 Cardano (ADA) ADA Cardano predictions 92% 12 $2.16 -0.54% -2.20% $71 185 024 084 ADA 7 days price change
5 Tether (USDT) USDT Tether predictions 95.6% 1 $1.000245 0.03% 0.09% $69 591 162 791 USDT 7 days price change
6 Solana (SOL) SOL Solana predictions 72% 55 $204.24 0.80% 29.17% $61 440 079 262 SOL 7 days price change
7 XRP (XRP) XRP XRP predictions 76.8% 50 $1.096102 -0.97% -3.88% $51 457 996 304 XRP 7 days price change
8 Polkadot (DOT) DOT Polkadot predictions 63.6% 79 $44.55 -0.99% 2.11% $43 999 075 422 DOT 7 days price change
9 Dogecoin (DOGE) DOGE Dogecoin predictions 74% 56 $0.246907 0.64% 4.09% $32 542 542 435 DOGE 7 days price change
10 USD Coin (USDC) USDC USD Coin predictions 94.4% 1 $1.000313 0.06% 0.09% $32 442 834 043 USDC 7 days price change
11 Terra (LUNA) LUNA Terra predictions 65.6% 65 $43.44 5.78% 17.86% $17 443 010 900 LUNA 7 days price change
12 UniSwap (UNI) UNI UniSwap predictions 72.4% 47 $25.79 -2.88% -0.74% $15 775 566 720 UNI 7 days price change
13 Avalanche (AVAX) AVAX Avalanche predictions 70.4% 65 $66.57 4.10% 17.36% $14 663 644 845 AVAX 7 days price change
14 Wrapped Bitcoin (WBTC) WBTC Wrapped Bitcoin predictions 66% 75 $61 265.73 -2.87% -0.84% $13 545 425 709 WBTC 7 days price change
15 Chainlink (LINK) LINK Chainlink predictions 72% 50 $29.07 -0.32% 7.40% $13 401 075 815 LINK 7 days price change

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2021 Crypto-Rating.com

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.