Here’s why IOTA price crashed after the Rebased upgrade

IOTA crypto price has slumped in the past few weeks and is now hovering at its lowest point since April 20. IOTA ( IOTA ) token dropped to the psychological point at $0.15 after falling by 41% from its highest level this year. It has declined by 75% from its November 2024 highs. The ongoing IOTA price retreat is in line with the performance of other altcoins like Solana ( SOL ) and Polkadot ( DOT ). It also followed the recently launched Rebased upgrade, which introduced numerous features such as smart contracts, staking, full decentralization, and a wallet transition. A key goal of the Rebased upgrade was to enable developers to build decentralized applications using the Move and Ethereum Virtual Machines. These developers would benefit from its high scalability, including over 50,000 transactions per second and sub-second finality. You might also like: Bitcoin could soon surge to $120K after it regained this crucial level: CryptoQuant Third-party data shows that the Rebased upgrade has not translated into increased developer activity on IOTA. DeFi Llama tracks one dApp with a total value locked of $9.76 million in the ecosystem. In contrast, several newly launched chains like Unichain and Sonic have attracted tens of developers and millions of dollars in assets. Additional data shows that the number of active addresses and transactions on IOTA remains low. Its 30-day transactions dropped by 86% to just over 621,100, while the number of active addresses stood at 8,376. Still, IOTA’s staking pools have accumulated over $334 million in assets, giving it a staking ratio of 45%. These investors are earning an annual APY of 13.47%, higher than most layer-1 and layer-2 chains. IOTA price technical analysis IOTA price chart | Source: crypto.news The daily chart shows that the IOTA price has been in a downward trend over the past few months. It dropped from a high of $0.6287 in November to $0.1595. Most recently, it declined from May’s high of $0.2746 following the Rebased upgrade. IOTA has moved below the 50-day Exponential Moving Average, a sign that bears are in control. On the positive side, it is slowly forming a double-bottom pattern at $0.1315 and a neckline at $0.2746. This is considered one of the most bullish reversal patterns in technical analysis. IOTA crypto price has also formed a falling wedge pattern, consisting of two falling and converging trendlines. Therefore, the token will likely experience a bullish breakout as long as it remains above the double-bottom point at $0.1314. You might also like: Pi Network price is up 18%, is a correction on the horizon?