IOTA price analysis: IOT/USD breaks below 100-DMA, MOU with United Nations doesn't help

On Wednesday, IOTA touched $1.3890, the lowest level since April 14, before recovering mildly towards $1.5185. The coin has been in a sell-off mode ever since it dropped below $2.00 with more downside pressure added on the move below 100-DMA (currently at $1.6462). IOTA is in green since the start of the day, but it is still down 6.7% in a 24-hour span.

IOTA gave its 9th place in the crypto top chart to Tron, so now it is now the 10th largest digital coin by market value, which is now $4.2M. IOTA's trading volume registered at $86M, better than $50M two days ago, but still a huge downgrade from over $300M on May 8. 

The United Nations Office for Project Services (UNOPS) announced a partnership with IOTA Foundation. The parties will be working together to increase the efficiency of UN operations, using IOTA technologies. The memorandum of understanding (MOU) was signed on Tuesday. UN is looking to optimize its document tracking and management, improve the efficiency of supply chains and transactional payments with IOTA's distributed ledger.

“We are thrilled to begin working together with UNOPS and to tackle current and future challenges together.  The IOTA Foundation is fully committed to putting the IOTA Tangle to work on behalf of important humanitarian and development causes,” IOTA Co-Founder Dominik Schiener commented.

This is a good development, but the sentiment-driven market chose to ignore it for the time being. Partnership deals between blockchain projects and traditional establishments are not something new, that's why they rarely become a standalone market driver.

IOTA technical picture

On the longer term timeframe, IOT/USD needs to grow above 100-DMA at $1.6462. This level has turned into a good support into resistance. Once it is cleared, the upside may be extended towards 50-DMA ($1.7860). On the downside, a sustainable move below $1.500 will open the way to $1.3 and, potentially, $1.0

IOT/USD, the daily chart