- Summary:
- The Theta coin price is on the slide today after breaking down from support. THETA may get very cheap, very quickly, offering bulls a great entry point.
The Theta Coin price is on the slide today after breaking down from support. THETA may get very cheap, very quickly, offering bulls a great entry point.
Theta Coin is trading at $5.5380, down $0.4088 (-6.87%).
On the 6th of June, my report warned bulls:
Beware of the lower edge, of the narrowing wedge
Unfortunately, the video-streaming blockchain, THETA, has broken out of the narrowing wedge, which may spell trouble quickly. THETA, the 18th largest cryptocurrency behind Polygon, has seen its market cap shrink to $5.9 billion. And were it not for poor performances from Ethereum Classic and Stellar lumens, THETA would have found itself outside the top 20 list.
The 10% drop after the Theta coin price lost the support of its recent range may be the start of something bigger. There are indications that THETA could be on the verge of a precipitous decline that could result in a 50% drop from here.
Whilst that may sound apocalyptic, we should remember that this would take the coin back to a level last traded in February, so it is hardly unrealistic.
Theta, the 8th letter of the Greek alphabet, is most commonly found in Trigonomics and options pricing. However, ominously, it was used as a warning of death in classical Athens, much like the skull and crossbones are used today.
Unfortunately, when I look at the chart, I am drawn to the latter.
THETA Technical Outlook
The daily price chart shows the THETA Coin price is starting to break down. However, some initial support may be found at the 22nd of June low of $5.2166. Although given the deteriorating technical outlook, this may prove futile.
Furthermore, THETA is below the 50, 100 and 200-day moving averages, reinforcing the long term bearish momentum. Additionally, light trading volume indicates a lack of bargain hunting on this latest decline. Therefore, unless we see a change of sentiment in the cryptocurrency market, the likeliest direction for THETA is down.
Downside targets include the 19th of May low at $3.7057 and, following that, the February breakout around $2.6000, some 53% below the current price.
This bearish outlook stays relevant as long as the Theta Coin price remains below the resistance of the once supporting trend line at $6.0800.
Theta Coin price chart (Daily)
Follow Elliott on Twitter.