IOTA (MIOTA) Price Prediction: Descending Triangle Pattern Signals Potential Bearish Trend

IOTA has recorded a modest 6% gain over the past week. While this may seem like a positive sign, technical indicators suggest a potential bearish trend may be forming.

IOTA has risen a modest 6% over the past week. While this may seem like a positive sign, technical indicators suggest a potential bearish trend may be forming, threatening to wipe out IOTA’s recent gains.

A looming reversal pattern on the charts signals that if bullish momentum fails to pick up, the token could be heading for a downturn. This bearish flip could trigger a sharp price drop, aligning with the broader weakness observed in the cryptocurrency market.

Market Sentiment: Weakness Across the Board

The wider crypto environment is still grappling with macroeconomic headwinds, putting a dampener on any swift recovery in the cryptocurrency market.

Large cryptocurrencies, such as Bitcoin (BTC) and Ethereum (ETH), are only just holding onto gains, with both trading in a less than 1% range over the past week. Meanwhile, Solana (SOL) is struggling to stay afloat, having lost around 3% in the past seven days.

Although there is the occasional pop among some altcoins—notably, Aptos (APT) has seen triple-digit gains—the general mood remains rather nervous.

A lot of this is because macroeconomic issues persist—chiefly ambiguity over global tariffs—causing many investors to take profits in advance. This risk aversion environment has led to constant selling pressure, particularly in the futures market.

Bitcoin, for example, will drop back to the $80,000 support level if such pressure persists. Any attempts to break above the key resistance level will be quickly sold into.

IOTA’s Current Price Action

As of Monday morning, IOTA is trading at $0.16, marking a gain of less than 1% in the past 24 hours. However, this slight uptick doesn’t tell the whole story.

After a decent run from the $0.13 area, IOTA appears to be forming a descending triangle pattern—a classic bearish indicator. This technical setup suggests that the coin may be losing bullish momentum.

If the lower boundary of the triangle breaks, and sellers manage to push the coin below the $0.14 support level, then it could open the door for a steeper decline.

A drop below the current support could embolden sellers to push IOTA down toward the $0.13 mark. If this level breaks, the next stop could be below $0.10—a concerning scenario for bullish investors.

However, if buyers manage to step in and push the coin back above the triangle’s upper boundary, then it could pave the way for a move toward $0.20.

Trouble Brewing in the Derivatives Market

The warning signs are not limited to spot price charts. Derivatives data point out that IOTA may be in worse trouble.

One of the key red flags is the condition of the funding rates in the futures market. These rates are moving towards negative levels, which means that bearish sentiment is increasing among the traders.

When the funding rates go negative, it indicates that short sellers have overwhelmed long buyers, generally anticipating a near-future price decrease. This is one of the most important indications that a majority of traders anticipate the token to decrease.

Stagnant Open Interest Raises Further Doubts

Another concerning factor is IOTA’s stagnant open interest. Open interest refers to the total number of outstanding futures contracts and often reflects market participation and enthusiasm. Since early 2025, IOTA’s open interest has remained largely flat, suggesting a lack of confidence among leveraged traders.

The combination of flat open interest and declining funding rates paints a rather bleak picture for IOTA in the short term. Unless market conditions shift or a catalyst emerges to inspire buyers, the token may continue to face downward pressure.