IOTA Crypto Plummets Amidst Bearish Market Conditions

Despite high liquidity based on market cap, IOTA crypto exhibits a bearish sentiment and high supply inflation. The declining trading volume and market cap, along with technical indicators such as the bearish cross EMA, negative MACD, and low RSI, suggest further price weakness. These factors indicate a potential downtrend, with support levels at $0.130 and $0.1960, and resistance levels at $0.3250 and $0.4160.

IOTA Crypto Faces Downtrend Amidst Bearish Sentiment

Introduction

IOTA, a distributed ledger technology (DLT) employing the Tangle structure, has experienced a decline in trading volume and market capitalization, signaling a bearish sentiment among traders. Despite its high liquidity based on market cap, the crypto has been grappling with a high annual inflation rate in its supply and declining technical indicators.

Trading Activity and Market Cap

Within the last 24 hours, IOTA's trading volume has witnessed a significant drop of 18.69%, resulting in a traded value of $13.927 million. This decline has pushed the crypto to a ranking of 281st in terms of trading volume, as per CoinMarketCap.

Concurrently, the market capitalization of IOTA has also decreased by 1.5% in the same period, currently standing at $739.922 million. This has resulted in a market cap ranking of #100, as per CoinMarketCap. The volume/market cap ratio has also declined to 1.87% over the last 24 hours.

Supply Dynamics

With a maximum supply of 4.60 billion IOTA, the crypto currently has a circulating supply of 3.23 billion IOTA. However, the supply inflation remains high at 16.19%, contributing to the bearish sentiment.

Market Dominance and Sentiment

IOTA's market cap dominance currently stands at 0.03%, with a fully diluted market cap of $1.05 billion. The volatility of the crypto has reached 15.85%, and the sentiment remains bearish, as per CoinCodex.

Derivatives Analysis

In the derivatives market, IOTA has recorded higher long liquidation in the last 24 hours, amounting to $60.01K. Short liquidation, on the other hand, has reached $3.72K, resulting in a long/short ratio of 0.9585.

The derivatives trading volume has declined by 1.09% in the same period, with a traded value of $24.44 million. Open interest has also seen a modest increase of 0.09%, currently standing at $13.07 million.

Technical Analysis

Technical analysis indicates a downtrend in IOTA's price, as evidenced by the formation of lower highs on the chart. The price has been trading within a rising wedge pattern but has failed to sustain above it, breaking below the support.

Currently, the crypto is forming bearish candlesticks on the chart, suggesting a potential further decline in price.

The 20-day and 200-day exponential moving averages (EMAs) have formed a bearish cross on the daily chart, and the price has fallen below both EMAs. This further indicates weakness in the price.

The Moving Average Convergence Divergence (MACD) and signal line are trading below the median level, and the metrics are in negative territory, representing a strong downtrend.

The Relative Strength Index (RSI) also supports the bearishness, as it has declined to a level of 38.6 from the overbought zones, indicating a loss of momentum.

Conclusion

Amidst declining trading volume, market cap, and high supply inflation, IOTA crypto faces a bearish sentiment. Technical indicators such as the formation of lower highs, bearish candlesticks, and declining EMAs, MACD, and RSI support the potential for further price weakness.

Disclaimer

This article is solely for informational purposes and does not constitute financial, investment, or other advice. The information provided should not be relied upon for making any financial or investment decisions. The author or any parties mentioned in this article bear no responsibility for any financial losses incurred as a result of investing in or trading IOTA crypto. It is recommended to conduct thorough research and consult with qualified financial professionals before making any investment decisions.