IOTA has shown a modest 6% gain recently but faces potential bearish signals due to a descending triangle pattern in price action and negative funding rates in the derivatives market. The overall cryptocurrency market is experiencing weakness, with persistent macroeconomic uncertainties leading to a cautious investor sentiment. Concerns include stagnant open interest, which suggests waning confidence among traders.
IOTA has experienced a modest gain of 6% over the past week. However, technical indicators indicate a bearish trend may be emerging, supported by a possible reversal pattern on the charts. Should buyer momentum fail to replenish, a price decline could occur, reflecting the overall weakness in the cryptocurrency market.
The cryptocurrency market continues to face challenges, with major players like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) only marginally holding gains. Investor sentiment remains cautious, primarily due to ongoing macroeconomic issues, particularly uncertainties regarding global tariffs, leading to profit-taking actions.
Currently trading at approximately $0.16, IOTA has seen less than a 1% increase in the last 24 hours. Despite this slight uptick, the asset is forming a descending triangle pattern, indicating potential further drops in price if purchasing activity does not increase.
IOTA’s risk continues as a potential drop beneath its current support might motivate sellers to target the $0.13 level. Should this support level fail, prices could decline further to below $0.10, creating a challenging situation for bullish investors.
Beyond spot price trends, IOTA shows concerning signs in the derivatives market, particularly with negative funding rates indicating a shift towards bearish sentiment among traders. This scenario arises when selling pressure surpasses buying, pointing to anticipated downward price movements.
Additionally, IOTA’s stagnant open interest reflects minimal engagement from leveraged traders, suggesting a lack of confidence in the market. Since early 2025, open interest has not shown significant change, further indicating an uncertain outlook unless external factors revitalise trader interest.
