New partnership announcements push IOTA/USD to its highest level since 2018, but fading sentiment threatens further gains
Current IOTA Price
IOTA is trading around $1.12, roughly 20% below last week’s peak. Earlier, the token dipped to $0.95, representing declines of up to 32% from the recent high of $1.41 — the strongest level seen since 2018.
IOTA’s pullback at the start of the new week follows a solid seven-day rally. Technical indicators now suggest the asset could extend its decline if buyers fail to defend a key support zone.
Why IOTA Reached a Multi-Year High
While many altcoins surged after Bitcoin’s retreat from above $48,000, IOTA’s sudden jump last week was mainly driven by news of a promising partnership.
The IOTA Foundation announced a collaboration with Dell Technologies on Project Alvarium. Described as a first-of-its-kind initiative, Alvarium aims to provide “a measurable way to assess trust in data before it is used by an application.”
Market reaction to the announcement sent IOTA up 32% in one day, rising from $0.88 to $1.40. Upward momentum continued, with candlestick patterns early on signaling increased selling pressure. The pullback began after IOTA/USD hit a potential local peak of $1.41 on February 13.
IOTA/USD Price Outlook
Recent price action appeared to halt a two-year downtrend, with trading reaching as high as $1.41. On the weekly timeframe, IOTA has climbed nearly 113% from lows near $0.55.
Technically, buyers still hold the upper hand. The weekly RSI is in overbought territory but not excessively stretched and shows a positive divergence. The weekly MACD also points to a strong bullish outlook. This suggests IOTA may still recover and retest the key resistance near $1.40 in the coming days.
However, selling pressure has picked up in recent hours, threatening to push the token deeper into a corrective zone.
A resistance line has formed near the local peak, which could make it difficult for bulls to replicate last week’s rally. The weekly chart indicates that upward momentum could turn bearish if prices fall below $1.12.
The daily chart shows consecutive red candles as bears push for lower levels. That pattern implies some traders may be taking profits above $1.10 by selling into strength.
Although the MACD remains in bullish territory, it is showing signs of weakening. The daily RSI also points to short-term challenges for buyers. A further drop toward $1.00 would likely increase downward pressure.
In that scenario, the 20-day EMA becomes an important level to watch, providing support around $0.80. A decisive break below this moving average could trigger steeper losses, exposing sellers to target levels near $0.72, $0.56 and then $0.47.