Deteriorating momentum could drive THETA below $ 5

Theta price is down over 20% from its early October high, showing signs that further weakness may be imminent. Theta (THETA / USD) is slightly weaker this morning at USD 5.927 (-0.09%), but up 17% in October and 217% year-to-date. However, the token is around 65% below April’s all-time high of $ 16.61. Theta currently has a market capitalization of 5.9 billion US dollars, making it the 34th most valuable cryptocurrency behind Fantom (FTM / USD).

Like many altcoins, Theta has failed to track Bitcoin higher in the past two weeks. BTC is currently changing hands over $ 64,000 as yesterday’s ETF listing encourages capital to flow up the food chain. As a result, it appears that Bitcoin sucks the lesser name of liquidity and money. As a result, BTC’s market share has increased to 47% and is likely to become more dominant in the near future.

Token Price Analysis

Several adverse developments have occurred on the daily chart. First, THETA price is trending down below the 50, 100 and 200 day moving averages (DMAs). The 50 DMA at $ 6.235 and the 100 at $ 6.233 are the first few resistor values. Above average, a declining trendline at $ 6.436 adds to the confluent upside barriers. In addition, the Moving Average Convergence Divergence Indicator (MACD) shows that negative momentum is building up. As a result, THETA is likely to revert to the September low of $ 4.630, while a steeper decline would bring the July low of $ 3.492 into focus.

The deteriorating technical data should continue to weigh on THETA as long as it stays below the moving averages and the descending trendline. Therefore, a closing price above $ 6.436 invalidates the bearish estimate.

Theta Price Chart (Daily)

For more market insights, follow Elliott on Twitter.

Comments are closed.