Will IOTA avoid a deeper drop as price faces seller dominance?

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IOTA falls 6.9% to $0.0486 today

Highlights

IOTA released Protocol 38 for its Devnet, introducing early rejection of invalid transactions to improve node efficiency.
The v1.34.0-beta preview published on October 12 aims to reduce wasted computational resources and enhance overall network performance.
IOTA trades below key moving averages with strong seller dominance, a projected range of $0.0442 to $0.0508, and low probability of short-term recovery.

Network upgrade fails to lift sentiment amid selling pressure

IOTA released Protocol 38 for its Devnet, which introduces early rejection of certain erroneous transactions before incurring unnecessary gas fees and aims to improve node operations, according to Kryptorevolution. The publication of the v1.34.0-beta preview version on October 12 is designed to enhance overall network efficiency by minimizing wasted computational resources. While this update marks incremental technological progress, price action has remained under broader selling pressure.

Negative momentum confirmed as resistance levels limit rebound

On the hourly chart, IOTA is trading below the MA-20 at $0.0495 and the MA-50 at $0.0512, with both levels signaling resistance in the short to medium term. The MA-200 sits lower at $0.047, providing nearby support, while the Ichimoku Kijun at $0.0498 marks the next technical barrier to the upside. Momentum indicators remain weak: MACD shows Strong Sell and ADX also points to a Sell condition, confirming ongoing negative momentum. RSI stands at 42.96, reflecting persistent selling interest, but both the Stoch RSI and CCI are Neutral and do not indicate strong oversold conditions. Bull/Bear Power stays negative, further highlighting seller dominance within current intraday ranges.

Sideways action expected as volatility and downside risk persist

Over the next two to three trading days, IOTA is likely to remain volatile within a typical range of $0.0442 to $0.0508. The odds favor continued sideways price action under pressure, with a low probability of a near-term recovery. A bullish scenario would require a decisive breakout above the $0.0498 resistance, while a bearish scenario unfolds if the price falls below the $0.0442 support level.

Viktoras Karapetjanc, expert at Traders Union, sees early signs of technological improvement in IOTA’s latest Devnet update, despite the coin facing heavy selling this session. He notes that the incremental protocol progress may help sentiment, but price remains capped by key resistance and weak momentum signals. In the short term, Karapetjanc expects IOTA to stay under pressure, with technical and macro sentiment both discouraging a quick recovery. He believes upside attempts will need sustained inflows and a strong move above resistance to reverse the trend. "While protocol upgrades are a constructive signal, sustained buyer commitment above $0.0498 is essential before expecting a larger rebound."

Earlier, analysts noted that IOTA was experiencing persistent bearish momentum and was expected to remain under pressure in the near term. The latest technical signals and ongoing selling confirm this outlook, making a break below $0.0442 a key downside risk to monitor in the coming days.

Source of Data: IOTA Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.