IOTA market cap dropped and its price consolidated on Microsoft (NASDAQ:MSFT) partnership misrepresentation. It is currently standing at 6th market cap position trailing behind Litecoin.
Remind me of IOTA Market Cap Story Again
Remember we talked about IOTA, the new crypto around the block last week and everyone got super excited about it? It’s market cap suddenly jumped to number 4 on the cryptocurrency list. Its price surged over 600% going from $1 to $5.5 last week.
The main reason IOTA 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 (KS:005930), Cisco Systems Inc (NASDAQ:CSCO), and Volkswagen (DE:VOWG_p) also partnered with IOTA, to utilize its Tangle-based solution for data monetization.
So What Happened now?
It turns out that Microsoft is not really an IOTA partner, but a participant. Which is still good, but it got many IOTA investors disappointed. So IOTA’s market cap, as well as crypto price, dropped accordingly.
IOTA now stands at the 6th position in terms of market cap, trailing behind Bitcoin, Ethereum, Bitcoin Cash, Ripple, and Litecoin.
Its price dropped slightly to the previous support level at $4.00.
Wait, That’s Not That Bad!
You might say this is still not that bad at all, and you are right. That’s because IOTA was able to clarify the controversy.
Despite the absence of an official agreement, IOTA and Microsoft 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.
Regardless of the recent price drop, the market valuation of IOTA remains above $11 billion, which is still significantly higher than its market cap in November.
Looking at IOTA chart…
IOTA’s price versus the USD is currently moving inside a symmetrical triangle, indicating indecisiveness in the market. This could very well be the calm before the storm, which could either blow up the price or drag it towards previous lows.
For now, from a technical point of view, we are in a wait-and-see situation. But this could be a good opportunity to purchase IOTA at a lower price if it breaks above the triangle on the next volatility wave. That is if you have sufficient risk tolerance to play this market.
Meanwhile, the overall cryptocurrency market cap, including Bitcoin and 1342 altcoins in circulation has hit half a trillion dollars for the first time.
*This article was originally published here