Theta price prediction: Beware of the lower edge, of the narrowing wedge

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Written By: Elliott Laybourne
Reviewed By: Saber
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    Summary:
  • The Theta price is in danger of giving back all of the last 2 week's gains. Furthermore, a poor close today could send Theta coin back to the May lows.

The Theta price is in danger of giving back all of the last 2 week’s gains. Furthermore, a poor close today could send the Theta coin back to the May lows.

Theta is trading at $6.079, up $0.1257 (+2.12%).

Although Theta coin has started today’s daily candle in the green, the price has lost 14% in the last seven days. This has reduced its market cap to just north of $6 billion and only marginally higher than Stellar Lumens $5.97 valuation.

The recent poor performance has weighed heavily on the Theta price. And subsequently, it has reached the important support level at the bottom of a narrowing wedge. I highlighted the formation’s significance last week:

As long as the price stays within this wedge, it doesn’t give much room for a prediction. Of course, there will be opportunities to trade within the narrowing channel. However, long term projection will only arise once the price breaks free from the stranglehold.”

Until that time, the THETA price may continue to trade broadly sideways.

Unfortunately for the bulls, that time may now be upon us.

Theta Coin technical outlook

The daily chart shows a clearly defined wedge pattern. The lower end of this channel is visible at $5.9000, just above today’s $5.9300 low. And in my opinion, the Theta coin must remain above this trend line.

Should the price fall below, the initial target is the 22nd of June low at $5.2100. Furthermore, a deeper decline sets the Theta coin price on a path to May 19th’s $3.7000 bottom.

Additionally, the price is below the important 200-day moving average at $6.6070, which lends more weight to the bearish argument.

Of course, if the price recovers the DMA, it will be encouraging. And in this event, the near-term bearish outlook becomes invalid.

THETA price chart (daily)

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This post was last modified on %s = human-readable time difference 15:15

Written By: Elliott Laybourne
Reviewed By: Saber

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
Reviewed By: Saber