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IOTA confirmed below a triangle chart pattern on Thursday after a Microsoft partnership misrepresentation scandal. What’s next for the new kid around the block?
What Went Down Before
Also called the new Bitcoin, IOTA’s market cap suddenly jumped to number 4 on the cryptocurrency list last week. Its price surged over 600% going from $1 to $5.5.
One of the main reasons the company got so much attention was that they made us believe they are fully partnering up with Microsoft.
CCN reported that large-scale conglomerates including Samsung, Cisco, and Volkswagen also partnered with IOTA, to utilize its Tangle-based solution for data monetization.
What Happened This Week
This week it turned out that Microsoft is not really an IOTA partner, but a participant.
But despite the absence of an official agreement, the two companies are indeed working together on several technology exercises involving IOTA’s Tangle network. The experiments include installing and connecting weather sensors to IOTA’s ledger technology.
How is IOTA Different than Other Cryptocurrencies?
IOTA’s name is a play on the ‘Internet of Things.’ With its simplistic worldview, it is actually seeking to build an ‘Economy of Things.’
IOTA’s mission is to connect businesses and their technological resources as something that can be traded.
But that is not all. According to some analysts, IOTA’s Tangle ledger is superior to cryptos relying on blockchain technology.
While the startup still needs meaningful partnerships to advance, the ecosystem appears to show a lot of promise comparing to its peers.
Looking at the Chart
IOTA’s price dropped for the second consecutive day on Thursday, breaking below its new key support level. At the time of writing, it is testing below a symmetrical triangle chart pattern.
IOTA Tests Below Triangle Chart Pattern
For now, from a technical point of view, we are still in a wait-and-see situation.
In a traditional market, if the price confirms below the triangle we could expect the bearish sentiment to continue towards next support levels. In this case, it would be the 50% and 61% Fibonacci levels at 3.17 and 2.6 respectively.
However, cryptocurrencies, in general, have shown that they are not following the typical market behavior. At least for now, when there is so much noise going on about them.
Regardless, for those who still have faith in this cryptocurrency, this could be a good opportunity to purchase it at a lower price. That is if you have sufficient risk tolerance to play this market.