IOTA price outlook: is it a buy after the latest ecosystem news?

IOTA price has crashed hard in the past few months even after the network made several important ecosystem news.

The token was trading at the psychologically important support at $0.20 on Thursday, down by over 52% from its highest point this year. It is also hovering near its lowest level since November last year. IOTA has made several important headlines this year.

On Thursday, the company said that its ID platform has been selected by the European Commission to take part in the European Blockchain Sandbox. 

The company’s ID solution will provide a seamless experience for Web3 identification. Users will start by going through a remote identification process with IDnow, a process that 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 that users have been verified. The other partners in this sandbox are HAVN Network and Bloom, an all-in one wallet.

Just a few months ago, IOTA reported that it had become the first company in the industry to be registered with the Abu Dhabi Global Market. 

This announcement came a few days after IOTA launched its EVM platform after months of testing. With this EVM, developers will be able to build decentralised applications on IOTA’s network. 

Since the announcement, Pyth Network launched its oracles on IOTA’s network while LayerZero integrated with the platform. IOTA token has likely wavered because investors are concerned about whether it will be a successful network.

For example, data shows that ShimmerEVM, IOTA’s canary network, has attracted just 7 DeFi developers. It has a total value locked (TVL) of just $4.57 million. Also, the industry has become highly competitive with platforms like Base, Blast, and Arbitrum gaining market share. 

IOTA price forecast

IOTA’s token has also tumbled because of an overall poor sentiment in the crypto industry. Bitcoin has tumbled to $67,000 while popular altcoins like Pepe and Bonk have fallen by double digits in the past two days.

On the daily chart, we see that the price of IOTA has tumbled hard from the year-to-date high of $0.4210 to $0.20. It is hovering near the 61.8% Fibonacci Retracement point and has moved below the 50-day and 25-day Exponential Moving Averages (EMA).

IOTA price is hovering above the crucial support at $0.1940, where it has failed to move below since April. Therefore, a drop below that level will be a sign that bears have prevailed, which could see it plunge to the psychological point at $0.15.