A lot of cryptocurrencies have gone through a pump cycle over the past few weeks. Whenever an event like this takes place, it is only a matter of time until a price correction sets in. In the case of the IOTA price, the correction is taking place right now. As a result, we see the IOTA price decrease by over 16% in the past 24 hours. After the initial run up to $1 per token, the value of MIOTA is returning to where it should be at this point in time.
IOTA Price Correction is Quite Steep
It is not entirely surprising to see the IOTA price go through a very steep correction right now. The price per MIOTA has been inflated by over $1 in the past few days, although everyone knew such a price point would not be sustainable whatsoever. Ever since this near all-time high was reached not too long ago, things have certainly taken a turn for the worse. Over the past 24 hours, we have seen a 16% decline in both USD and BTC value.This trend was to be expected after such a massive pump out of the blue.
Especially the past week has been pretty interesting for IOTA investors. With the IOTA price rising from $0.8 to just under $1 in quick succession, it was evident someone tried to pump the value to a new all-time high. Eventually, the pump failed miserably, as the IOTA price never reached a new all-time high. Instead, the pump has now run out of steam and the IOTA price is showing signs of weakness. It is expected this value will continue to drop a lot further, as this currency shouldn’t necessarily be worth more than $0.5 or even less.
Thanks to this 16% decline in both USD and BTC value, the IOTA price is now hovering around the $0.75 level. Although it dipped below $0.70 and bounced back quickly, there is no reason to think it can’t drop further in the coming hours and days. Volatility is setting in for all cryptocurrency markets, yet the ones whose value got pumped artificially will suffer the biggest losses. IOTA is still in the early stages of development and its token price was well overhyped over the past two weeks.
Moreover, the IOTA trading volume is showing some signs of weakness as well. Although over $101.5m worth of volume in the past 24 hours is still pretty decent, most of the trading is dominated by people liquidating IOTA assets right now. That is only normal as more people become aware of this downtrend. People take their profits and simply move on to the next big thing. Which currency that will be exactly, remains to be determined, though.
For the time being, Bitfinex remains the largest IOTA exchange by trading volume. Their price is a lot lower compared to Binance in second place and much lower compared to OKEX . Unlike what most people think, IOTA can only be traded on a few exchanges so far, and it remains to be seen if other trading platforms decide to list this token. For now, the negative momentum has a massive impact on the IOTA price, and it is unclear how low the value will drop in the coming hours and days.
The weekend is almost upon us and it might be a very volatile one, to say the very least. More specifically, we have seen a lot of positive momentum affecting Bitcoin and virtually all altcoins all week. This momentum is starting to reverse in a lot of cases, especially for the currencies which haven’t seen organic growth whatsoever. Unfortunately, IOTA is one of those coins with a massively inflated price, and a correction is only to be expected. It will be interesting to see what the IOTA price will be next week.