Like the rest of the market, IOTA is in the red, and is now trading at under $0.70, a low it hasn’t hit in a long-time. Unfortunately, things could get even murkier for IOTA investors. Emerging news show that there is some in-fighting between in the IOTA foundation. As per a transcript on Pastebin, Sergey Ivancheglo says that he no longer has trust in Dominik Schiener, and wants some changes that would see Dominik out. Going by this transcript, it is clear that there is a serious problem within the IOTA foundation.
For investors, this is definitely the worst news that could come in a bear market. Today, there is lots of selling after news came out that the much-awaited bitcoin ETF decision had been delayed. The biggest losers since these news broke out have been the altcoins. As such, any altcoin that has any kind of bad news at this point is likely to see an accelerated sell-off, and price decline.
That’s because the market is shaky, and the last thing investors want is more uncertainty. The first instinct under such conditions would be to either rush into bitcoin (BTC) or into stable coins like USDT. That’s why in the near-term, IOTA (MIOTA) could very easily bleed more than the rest of the market.
The IOTA issue is complicated by the fact that this is not the first time there are signs of disagreements in the IOTA team. As such, these new issues could be interpreted to be a signal that the people behind this high potential coin may not be pulling in the same direction, and that’s a risk to the coin’s value. However, the biggest risk is in securing crucial partnerships.
IOTA (MIOTA) has in the past secured some high value partnerships especially in the mobility industry. If in-fighting within IOTA comes to the fore, there could be a real danger of such partnerships getting into trouble. Such infightings could also forestall future partnerships that would add value to IOTA (MIOTA) in the future.
Without dwelling so much on the worst case scenario, what’s the possible direction of IOTA (MIOTA) based on the charts? In the weekly charts, IOTA (MIOTA) has broken below a key support level at $0.92. With the high selling momentum in the market at this point, IOTA (MIOTA) could very likely hit the next key support level, which is at $0.30.
Whether IOTA (MIOTA) gets to this point in the near-term will very much dependent on how the IOTA foundation handles the disagreements that are now in the public domain. If they handle it well, then it could rebound at around at the $0.50 psychological support level. However, if they don’t handle it well in a manner, and create uncertainty about the project’s future, then there is a good chance that IOTA could hit $0.30. It’s very much possible, now that the market as a whole is bearish, and tilted more in favor of BTC.