Lorenzo Stroe
Independent Analyst
- Theta price jumped 90% since December 22 and has been really volatile for the past four days.
- There is one critical indicator that suggests the digital asset is poised for a significant correction.
Theta was trading at $0.92 on December 22 before a massive rally towards $1.74 in just one week, climbing by almost 90%. Theta has been under consolidation ever since and is potentially forming a bull flag on the daily chart.
Theta price at risk of falling to $1 if this signal is confirmed
On the daily chart, the TD Sequential indicator has presented a green ‘8’ candle which is usually followed by a strong sell signal. The most significant support level could be the 26-EMA located at $1, which is the bearish price target.
THETA/USD daily chart
On the 4-hour chart, Theta has formed a symmetrical triangle pattern which seems to be favoring the bears currently. A breakdown below the lower support trendline at $1.38 can quickly drive Theta price down to $1, which also coincides with the 100-SMA and the 26-EMA on the daily chart, giving more credence to this price target.
THETA/USD 4-hour chart
On the other hand, if the bulls can step up and defend the $1.38 support point, Theta can quickly jump towards $1.5. A breakout above this point would drive the digital asset’s price towards a high of $1.9.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Avalanche set to gain wider reach with its Stripe integration
Stripe makes another move by integrating AVAX and Core into its platform. Users can purchase AVAX directly on Stripe, along with dapps and NFTs. The partnership may stir traffic into the Avalanche ecosystem and cause more interest in web3.
BNB price risks a 10% drop as Binance founder and ex-CEO Changpeng Zhao eyes Tuesday sentencing
Binance Coin (BNB) price, like most altcoins, is dumping, with the one-day chart showing a defined downtrend. While the broader market continues to bleed, things could get worse for BNB price.
EigenLayer to launch airdrop in May following the introduction of the Eigen Foundation
EigenLayer announced it would launch season one of its airdrop on May 10. EIGEN tokens would play a key role in the recently introduced "intersubjective forking." Some crypto community members have expressed dissatisfaction with the airdrop vesting schedule.
Ethereum erases weekend gains as yearlong SEC investigation comes to light
Ethereum (ETH) began the week by posting losses of 4.2% on Monday after recent filings from Consensys revealed that the Securities & Exchange Commission (SEC) began formal investigations into ETH's security status since March 2023.
Bitcoin: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s (BTC) recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.