As most of the cryptocurrency market takes a well-earned rest this morning after the recent rally, the Theta price is fighting for its life and attempting to reclaim support. However, despite a valiant effort, THETA is yet to recover and may still break down.
Video streaming network THETA was on the verge of breaking out on Monday after clearing a significant resistance level. But this morning, the coin is in danger of falling out of bed after sliding below major support. Despite gaining more than 100% since the 20th of July, the Theta price never got close to replicating the efforts of some of the better performing coins over the last month. At the current $7.0500, the coin is still around 58% below April’s record high. Sadly, a quick look at the chart suggests that it may still be heading lower unless the Theta price can climb above the 100-day moving average and back into its uptrend.
As the daily chart shows, THETA had been trading in an ascending triangle formation since May’s crash. On Monday. the price pierced the horizontal top end of the triangle at $7.8000 before extending higher to $8.4890. However, by the close of play, the THETA price had reversed back into the formation. Furthermore, the 200 DMA at $7.50 has surrendered in the two days following, and the 100-day is about to fall. Not to mention the lower edge of the triangle is giving way.
Considering the failure to break out on the upside, the downside now looks favourable. The outlook will remain extremely negative unless the THETA price can close above the 100 DMA at $7.0200. But even then, the price will be vulnerable until it clears both the 200 DMA and the horizontal resistance at $7.8000. The Intitial downside target is the 50 DMA at $6.001, and should that fail to support the price, the 30th of July low at $5.2000 beckons.
Although, this relies heavily on theta remaining below $7.0200. A close above that level invalidates the immediate bearish outlook.
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