IOTA's Price Drops 41% Post Rebased Upgrade

IOTA's cryptocurrency price has experienced a significant decline in recent weeks, reaching its lowest point since April 20. The token dropped to $0.15, marking a 41% decrease from its peak this year and a 75% decline from its November 2024 highs. This downturn aligns with the performance of other altcoins such as Solana and Polkadot. The price drop followed the launch of the Rebased upgrade, which introduced features like smart contracts, staking, full decentralization, and a wallet transition.

The Rebased upgrade aimed to enable developers to build decentralized applications using the Move and Ethereum Virtual Machines, offering high scalability with over 50,000 transactions per second and sub-second finality. However, third-party data indicates that the upgrade has not resulted in increased developer activity on IOTA. DeFi Llama tracks only one dApp with a total value locked of $9.76 million in the ecosystem, while newly launched chains like Unichain and Sonic have attracted tens of developers and millions of dollars in assets.

Additionally, the number of active addresses and transactions on IOTA remains low. Its 30-day transactions dropped by 86% to just over 621,100, while the number of active addresses stood at 8,376. Despite this, IOTA’s staking pools have accumulated over $334 million in assets, giving it a staking ratio of 45%. These investors are earning an annual APY of 13.47%, higher than most layer-1 and layer-2 chains.

The daily chart shows that the IOTA price has been in a downward trend over the past few months, dropping from a high of $0.6287 in November to $0.1595. Most recently, it declined from May’s high of $0.2746 following the Rebased upgrade. IOTA has moved below the 50-day Exponential Moving Average, indicating that bears are in control. On the positive side, it is slowly forming a double-bottom pattern at $0.1315 and a neckline at $0.2746, which is considered one of the most bullish reversal patterns in technical analysis.

IOTA has also formed a falling wedge pattern, consisting of two falling and converging trendlines. Therefore, the token is likely to experience a bullish breakout as long as it remains above the double-bottom point at $0.1314.