Cryptocurrencies

THETA price is coiled like a spring below critical resistance: $10 incoming?

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Written By: Elliott Laybourne
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    Summary:
  • The THETA price is grappling with the 200-day moving average at $7.46 this morning as bulls push for another run at the elusive $10.00 level.

The THETA price is grappling with the 200-day moving average at $7.46 this morning as bulls push for another run at the elusive $10.00 level. THETA (THETA/USD) is trading at $7.25 (+3.27%), +43% in October, and +288% year-to-date. The video streaming network has a market cap of $7.25 billion, and is currently the 31st most valuable cryptocurrency project, behind TRON (TRX/USD).

Similar to many altcoins, THETA’s native token has performed well over the last week. However, unlike some that have marched to new records, the THETA price is around 25% below September’s high, and -56% from May’s $16.61 all-time high. Nonetheless, several positive developments have emerged since the 22nd of October.

Price Analysis

THETA has cleared the trend line resistance at $6.32, hurdling the 50, and 100-day moving averages (DMA’s) in the process. Furthermore, the 200-DMA at $7.46 could be the next domino to fall. Successful clearance of the long-term indicator on a closing basis would undoubtedly attract momentum buying. A logical target on the upside is the September high of $9.81, followed by the June top at $10.58. The Relative Strength Index (RSI) is trending higher and last at 63.45. Although the RSI is close to overbought, altcoins typically overshoot and therefore, I consider the indicator constructive. However, a quick look at the trading volume highlights the lack of participation. Nonetheless, on balance, the overall picture supports a bullish breakout.

The optimistic view does come with caveats. The bullish outlook relies on the THETA price remaining above the 50, and 100-DMA and the descending trendline. Therefore, if THETA closes below the trend, now at $5.94, it invalidates the bullish view.

THETA Price Chart (Daily)

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This post was last modified on %s = human-readable time difference 04:04

Written By: Elliott Laybourne

Elliott Laybourne is an accomplished Hedge Fund sales and Investment bank trading specialist. Elliott also started a successful Base Metals Brokerage business in partnership with ABN AMRO clearing bank. He worked on the open outcry trading floors at the London International Financial Futures Exchange 'LIFFE' and the London Metal Exchange 'LME.' He also provided research and execution services for Goldman Sachs, JP Morgan, Credit Suisse, Schroders Asset Management, and Pennsylvania State Public School Employees Retirement System, as amongst others. Today, he focuses on providing trading consultancy and business development services for family office and brokerage clientele.

Published by
Written By: Elliott Laybourne