Theta price tone deafens bulls, as THETA searches for a conclusive low
|- Theta price demolishes 50-day simple moving average (SMA) support.
- Double top measured move target reached overnight.
- THETA is an innovative platform providing solutions for decentralized video streaming.
Theta price collapsed over 27% overnight, taking the token below the 50% retracement level of the rally from the 2020 low to the recent high and down to the double top measured move target at $7.36. In the short-term, the 50-day SMA may be a magnet for the price, but the lack of an oversold reading at this point projects a return to today’s low at least.
Theta price shows that a dull market disguises problematic technicals
Bears came out of the caves overnight to drive THETA down over 27% before reaching support near the measured move target of $7.36. The ensuing rebound has the digital token back near the 50-day SMA, but more weakness is likely in the future.
A good gauge of a low is when the daily or even weekly Relative Strength Index (RSI) falls below 30, into oversold territory. It is called the momentum low, but it does not mean a price low. Often prices drift lower for a few days before commitment and emotion take control of the instrument and push it higher. It is expected that a similar fate awaits THETA moving forward. The altcoin needs to print a momentum low and a price low to completely release weak holders from the ranks.
Support levels for a renewed THETA sell-off include the 50% retracement level at $8.32, the measured move target at $7.36, and, more importantly, the convergence of the 100-day SMA at $6.45 with the 61.8% Fibonacci retracement at $6.36. Any further weakness will need to respond to the 78.6% retracement at $3.58. This would result in a big blow to a 2021 performance leader.
THETA/USD daily chart
A daily close above the 50-day SMA at $10.20 will flip the attention to the double bottom trigger at $11.07 as significant resistance. Similarly, a daily close above $11.07 would turn the THETA working thesis to neutral and raise the odds of testing the 2021 high at $16.61.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.