IOTA price resumed its strong bullish trend this week as Bitcoin surged to over $70,000. It soared to a high of $0.3650 on Tuesday morning, its highest point since March 15th. It has surged by more than 35% from its lowest point last week.
Fear and greed index rises
IOTA token was one of the best-performing cryptocurrencies in the market this week. This rebound happened as the price of BTC, the biggest cryptocurrency in the world, surged to over $70,000 for the first time since March 15th.
Bitcoin’s rally was mostly because of the ongoing rotation from Grayscale Bitcoin Trust (GBTC) ETF to other funds like the iShares Bitcoin Trust (IBIT) and Fidelity’s FBTC. The GBTC fund has shed substantial assets in the past few weeks because of its hefty fees, leading to more pressure for Bitcoin.
The ongoing IOTA and Bitcoin recovery has also led to more greed in the crypto market. The crypto fear and greed index surged to the extreme greed zone of 83. This is a strong recovery since it retreated to the greed area of 75 last week.
Meanwhile, IOTA is seeking to boost its ecosystem by investing in some of the most promising players. On Monday, the IOTA Foundation launched a $10 million investment fund at Investopia in the United Arab Emirates (UAE).
This is a major step considering that IOTA became the first Distributed Ledger Network (DLT) to be registered in the country.
The biggest risk for IOTA is that Shimmer EVM is not doing well, as I wrote here. Data shows that the total value locked in the network has dropped to $5.2 million. Most of the ecosystem networks like ShimmerSea, Deepr Finance, and Accumulator have shed over 30% of their assets in the past 30 days.
IOTA price forecast
The 4H chart shows that the IOTA token crashed to a low of $0.2695 last week, mirroring the performance of Bitcoin. It has continued with this correlation as it soared to $0.3662 on Tuesday morning, its highest point since March 15th.
The token has jumped above the first resistance of the Woodie pivot point and the 50-period Arnaud Legoux Moving Average (ALMA). Also, the Average Directional Index (ADX) has remained above 25, signalling that there is momentum.
Therefore, the outlook for IOTA is extremely bullish, with the next level to watch being at $0.4200, its highest point this year. This price is about 16% above the current level.
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