A lot of cryptocurrencies have undergone pump cycles over the past few weeks. Whenever such events take place, it is only a matter of time until a price correction sets in. In the case of IOTA, the correction is taking place right now. As a result, we’ve seen the IOTA price decline by over 16% in the past 24 hours. After the initial run-up to US$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 undergoing a very steep correction right now. The price per MIOTA has been inflated by nearly US$1 in the past few days, although everyone knew such a price point would not be sustainable whatsoever. Ever since the near all-time high was reached not long ago, things have certainly taken a turn for the worse. Over the past 24 hours, this altcoin has seen a 16% decline against both USD and BTC. This trend was to be expected after such a massive pump out of the blue.
In particular, the past week has been pretty interesting for IOTA investors. With the IOTA price rising from US$0.8 to just under US$1 in short order, it was evident someone was trying to pump this value to a new all-time high. Eventually, the pump failed miserably, as the IOTA price never reached that new all-time high. Instead, the pump ran out of steam and the IOTA price is now showing signs of weakness. It is expected this value will drop a lot further, as this currency shouldn’t necessarily be worth more than US$0.5, or even less than that.
The IOTA price is now hovering around the US$0.75 level. Although it dipped below US$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 currencies whose values got pumped artificially will suffer the biggest losses. IOTA is still in the early stages of development and its token price was significantly overhyped over the past two weeks.
Moreover, the IOTA trading volume is showing some signs of weakness as well. Although over US$101.5 million worth of volume in the past 24 hours is still pretty decent, most of the trading is dominated by people liquidating IOTA. That is only normal as more people become aware of the current downtrend. People will take their profits and simply move on to the next big thing. Exactly which currency that will be remains to be determined, though.
For the time being, Bitfinex remains the largest exchange in terms of trading volume for IOTA. Its price for IOTA is a lot lower compared to Binance, the second-largest exchange, and much lower compared to OKEX . Despite what most people think, IOTA can still only be traded on a few exchanges, and it remains to be seen if other trading platforms decide to list this token. For now, the negative momentum has had 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 least. More specifically, we have seen a lot of positive momentum for Bitcoin and virtually all altcoins all week. This momentum is starting to reverse in a lot of cases, especially for those currencies which haven’t seen any organic growth whatsoever. Unfortunately, IOTA is one of those coins with a massively inflated price, and a correction was only to be expected. It will be interesting to see what the IOTA price will be next week.