|

Theta price faces magnet effect, which could propel it higher

  • Theta price emerged from an ascending triangle on March 17.
  • Measured move target projects another 13% in gains.
  • Intra-day weakness seems to be temporary.

Theta price has stalled in the past six hours, but the weakness does not diminish the bullish outlook. The measured move target at $9.80 and the important $10 level remain within the advance’s grasp.

Theta price aims higher

Monroe Trout, a successful hedge manager, liked to trade the ‘magnet effect’ - markets’ tendency to get to round numbers. It proved to be a highly profitable strategy for Trout, and it has proven valuable on many different financial markets, whether it be equity indexes, individual stocks, or currencies.

During the five-day symmetrical triangle formation, only two of the 18 down candlesticks were on above-average volume on the 4-hour chart. Such market behavior demonstrated that the notable rally in Theta during 2021 is far from being a pump-and-dump story.

Today’s intraday weakness is simply a technical reaction to the slight overbought condition on the Relative Strength Index (RSI). After releasing some of the pressure, Theta will likely advance to the measured move target of $9.80, representing a gain of 13% from the current price level.

Investors must be prepared for the magnet effect to come into play, which will lift THETA to $10. The more patient traders may be rewarded with a test of the 2.618 Fibonacci extension level at $11.

LINK/USD 4-hour chart

LINK/USD 4-hour chart

If the intraday weakness accelerates, the first support is the symmetrical triangle high at $8. The next important level is the 50 four-hour simple moving average (SMA) at $7.30. It provided support on March 17, right before the breakout. 

A more dramatic decline will take Theta price down to the low of the symmetrical triangle at $6.20.

Author

Sheldon McIntyre, CMT

Sheldon McIntyre, CMT

Independent Analyst

Sheldon has 24 years of investment experience holding various positions in companies based in the United States and Chile. His core competencies include BRIC and G-10 equity markets, swing and position trading and technical analysis.

More from Sheldon McIntyre, CMT
Share:

Editor's Picks

Bitcoin slips below $90,000 as Trump's tariffs swing, ETF outflows pressure price

Bitcoin price struggles below $90,000 on Friday, correcting nearly 5% so far this week. Trump’s Davos speech on Wednesday, backing away from imposing further tariffs on the EU, triggered market volatility and risk-on mood.

Ripple holds losses above $1.90 amid mild ETF inflows, muted retail interest

Ripple is trading under pressure, hovering above the immediate support level at $1.90 at the time of writing on Friday. Despite mild inflows into spot ETFs, XRP has declined for a second consecutive day, reflecting weak retail demand and persistent selling pressure.

Pump.fun sees bearish reversal despite buyback

Pump.fun trades below $0.0025 at the time of writing on Friday, after a nearly 7% decline from the 50-day Exponential Moving Average at $0.002601. The recent purchase of over $1 million in PUMP tokens failed to revive retail support, as PUMP futures continue to see capital outflow.

Crypto Today: Bitcoin, Ethereum, XRP face elevated downside risk amid weak technical setups

Bitcoin is struggling to stay above support at $89,000 at the time of writing, as headwinds intensify across the cryptocurrency market on Friday. Ethereum and Ripple are facing low retail and institutional demand, while bearish indicators continue to flash subtle signals that losses may extend further.

Bitcoin Price Annual Forecast: BTC holds long-term bullish structure heading into 2026

Bitcoin (BTC) is wrapping up 2025 as one of its most eventful years, defined by unprecedented institutional participation, major regulatory developments, and extreme price volatility.

Bitcoin: BTC slips below $90,000 as Trump's tariffs swing, ETF outflows pressure price

Bitcoin (BTC) is trading below $90,000 at the time of writing on Friday, down nearly 5% this week. Despite a brief improvement in risk appetite following US President Donald Trump’s mid-week speech at Davos, the Crypto King remains under pressure as institutional demand continued to weaken so far this week.