The Theta price is under pressure as the drop in major currencies led to a major panic in altcoins. THETA has dropped in the past four consecutive days and it is trading at the lowest level since March 25. Its market value has dropped to more than $18 billion while its ranking has dropped from top ten to the current 16. It has been passed by the likes of Stellar, VeChain, Chainlink, and Uniswap.
Theta hype runs out: A few weeks ago, Theta was the talk of the town. The digital currency had managed to surge to become the seventh-biggest cryptocurrency in the world. This year, the currency has surged by more than 55%. That has brought the post-pandemic gains to almost 30,000%. This means that people who spent a dollar when the price crashed to $0.036 now have almost $300.
The recent decline is mostly because of fundamental and technical reasons. From a fundamental perspective, the Theta price has dropped as investors react to the recent Coinbase IPO. After rising before the listing, the price has now declined as the momentum fades. As you will see below, from a technical perspective, the Theta price declined after it formed a double-top pattern.
The daily chart shows that the Theta price formed a double-top pattern at $15.87 last week. In technical analysis, this pattern is usually a bearish signal. It basically means that the momentum has started to fade. At the same time, Theta has moved between the 25-day and 50-day exponential moving averages while the Average True Range (ATR) has continued to rise.
Therefore, in my view, I suspect that the price will continue dropping as bears target the next key support at $8.13. This prediction will be invalidated if the price moves above $12.
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