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.
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.
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This post was last modified on May 24, 2023, 15:15 BST 15:15
