The Theta price has more than doubled in the last week. But can the rally continue, or has THETA gone up too much, too soon?
THETA, the native token of the video-streaming blockchain Theta, has had a remarkable week. In the first three weeks of July, the THETA price almost halved from $6.9300 to $4.4500. However, in the last 7 days, the coin has clawed back almost all of the decline.
Furthermore, at this morning’s $7.455 high, Theta was breaking out to the upside. Although, the price has since retreated around 15% as investors take stock of the parabolic rally.
However, this morning buyers are returning to the cryptocurrency market in droves. The revelation that Amazon (Nasdaq: AMZN) may begin to accept crypto payments before the end of the year has drastically improved sentiment.
And with Bitcoin closing in on the critical $40,000 mark, the bulls are growing in confidence. But can the THETA price momentum continue at this dizzying pace?
The daily chart highlights the magnitude of the recent rally. A week ago, the coin was in danger of breaking below its long term uptrend.
However, the trend line support at $3.500 reversed the decline. And as a result, the rally that followed has lifted THETA clear from imminent danger.
Furthermore, the price is testing the resolve of a downtrend at $7.2200 from the April all-time high.
However, the Theta price is struggling to scale the three key moving averages. The 50, 100 and 200 DMA’s at $6.6730, $8.0206 and $6.9738 are still intact. Although, if Theta advances beyond the DMA’s, the bullish outlook improves considerably.
Although, until that happens, buyers may baulk at chasing the price into this strong cluster of resistance. Furthermore, it will be under the moving averages and the trendline if Theta closes today’s session at this price.
On that basis, until the current daily candle is completed, a Theta price prediction is a risky business. Although tomorrow that may well change.
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