IOTA has both a definite use case and droves of loyal supporters — could this mean a bullish June for IOTA?
Late 2020 and early 2021 brought massive price growth for a lot of cryptocurrencies. Some have grown to their old all-time highs (ATHs) and surpassed them, sometimes only by a little, sometimes by quite a bit. Most people are aware that Bitcoin’s ATH reached in 2021 is three times higher than the previous one, reached in 2017.
However, there were also coins that were growing more slowly. One reason may be that the investors were more cautious, while another could be that they simply did not attract as much attention as the heavy hitters. One example is IOTA (MIOTA), which has not yet hit its previous ATH, reached in January 2018.
IOTA price in 2020 and 2021
Following its ATH in 2018, IOTA had been dropping for an entire year, finally stabilising around $0.30. It spent the next two years with relatively small fluctuations, for the most part, and three separate occasions when it surged a bit higher than usual. That happened in June 2019, February 2020, and August 2020. Each time, there was strong bull activity in the crypto sector, and most coins saw far larger surges during these periods.
Source: CoinMarketCap
IOTA was ignored by the bull run of late 2020 that took BTC back to its old ATH, and then to $30k for the first time. In fact, IOTA only started awakening in January 2021, but even then, it only managed to get to $0.42 before its growth stopped. Fortunately, the coin remained at this elevated level until early February, which is when it skyrocketed to $1.48, going up almost by almost a factor of four in less than three weeks.
Eventually, the coin reached a three-year high on April 16th, when it climbed to $2.53. However, after reaching such a high level, it also dropped quite a bit when its price was rejected, sinking to $1.60. This drop was followed by two more failed attempts to return to the resistance at $2.40, as the coin only managed to reach $2.20 both times.
Source: CoinMarketCap
By mid-May, the crypto industry started seeing the bear wave that cut Bitcoin’s price in half, but MIOTA suffered an even greater loss, percentage-wise. It went down from $2.20 on May 9th to $0.90 on May 22nd, nearly a 60% drop. Over the next few weeks, however, it started to recover, particularly in early June, which allowed it to progress to $1.30.
IOTA price forecast
IOTA now stands a good chance at seeing the continuation of its growth, due to strong emerging fundamentals in the wake of May’s crash. It was recently reported that the project launched its new development network (DevNet), which was largely considered an excellent move, as it brings the project one step closer to full decentralisation.
The new DevNet is also known as IOTA 2.0, or ‘Nectar.’ Additional reports have revealed that the initial tests of the network have shown a lot of promise, and so the foundation of the future growth of IOTA is already being set.
Source: TradingView
Because IOTA grew less slowly than the rest of the crypto market during this bull cycle, it perhaps became less “overheated” than the likes of Bitcoin and Ethereum, whose unsustainable growth rates led to many long term trend and support lines being broken.
Despite capitulation wicks breaching it, there has yet to be a daily close beneath IOTA’s long term trendline. This potentially bodes well for June, as it creates a bullish ascending triangle pattern on the daily chart. IOTA’s daily RSI also appears to be making a recovery.
This decently strong technical picture, as well as healthy fundamentals, have led to some bullish predictions by experts. TradingBeasts, for example, believe that the coin will reach $1.60 by the end of June, with an upper estimate of over $2 by the end of 2021.
WalletInvestor has shared a similar but more cautious view. Their 1-year prediction says that IOTA could be back to $2 in a year, and their 5-year forecast predicts IOTA just below $5 per coin. As for the June prediction, the project believes that IOTA will fluctuate between $1.20 and $0.95 in weeks to come, eventually dropping below this support in the second half of the month, all the way down to $0.725.
It is clear that IOTA’s development and progress are appreciated by the crypto community, despite the fact that the general sentiment is still extremely bearish in the market. A target of $1.60 has been set by experts for the end of June, and this would mark a 50% rally for IOTA if it were to take place.
Please note, the details provided above are entirely a personal opinion of the writer, derived from the relevant market data. None of these are meant to be taken as direct investment advice.