Once gracing the top 10 cryptocurrency leaderboard, Theta’s tumble has resulted in a drop all the way to the 17th spot. Its recovery over the week has not been impressive as the digital asset faced significant resistance at key levels. As a result, the weekly losses extended all the way to 6.75%
Theta was down by 7.79% over the past 24-hours which drove its price to $8.15. At the time of writing, the crypto-asset was recorded a market cap of $8.24 billion and a 24-hour trading volume of $240 million.
Theta Daily Price Chart:
Theta formed a head and shoulder pattern on its daily price chart as its uptrend since the mid-May crash was met with multiple drawdowns from selling pressure near the local tops. This reversal pattern could prove damaging for the price of the digital asset. Further confirming the bearish trend was the volume indicator which was considerably higher during the advance of the left shoulder than during the advance of the head of the pattern formation. This is a major warning sign as the volume took a plunge which coincided with the new high of the head.
The moving averages also depicted a similar sentiment. The 50 DMA [Pink] sustained a bearish crossover with the 100 DMA [Blue] above the Theta price candles indicating that the bulls have so far failed in defending the area.
The red closing bars of Awesome Oscillator depicted a slowly growing bearish momentum in the Theta market. A bearish phase was also suggested by the Klinger Oscillator. The RSI, below the 50-median line, further indicated a sentiment of rising selling pressure in the market.
The pattern and the indicators, all point towards a strong bearishness in Theta’s price. Hence, a pullback is imminent. The bears could try to sink the crypto-asset’s price to its immediate support level of $5.88, meaning a loss of almost 30% from the press time price. However, if it fails to launch defense in this area, Theta risks damaging fall to other support levels of $4.16 and $1.8 respectively.
The nearest resistance levels, on the other hand, stood untouched at $9.62 and $12.27 respectively.