The Theta price has been under intense pressure in the past few weeks. The token is trading at $5.4140, which is about 44% below the highest point this month. Its total market capitalization has dropped to more than $5.3 billion, making it the 30th biggest crypto platform in the world.
Why has THETA lagged?
There are several reasons why the Theta price has lagged the market this month. First, after recording a spectacular growth in August, there is a likelihood that many investors have started to take profit.
Second, Theta’s drop has coincided with the overall lacklustre of the overall financial market. Stocks have declined while the total market capitalization of all cryptocurrencies has declined to below $2 trillion. This is partly because September is historically a bearish month for stocks and other assets.
Third, the Theta price has dropped because of lack of new information and updates from Theta’s team. A quick look at the developer’s platforms shows that the last update happened in August. In cryptocurrencies, regular updates from developers is usually a bullish signal.
Finally, Theta has declined because of the ongoing fears about Evergrande and the American debt ceiling issue.
Theta price forecast
The daily chart shows that the Theta price has been in a strong bearish trend in the past few weeks. This trend has pushed it below the 25-day and 50-day moving averages (MA). Notably, it has formed what looks like ahead and shoulders pattern.
Therefore, there is a likelihood that the stock will maintain a bearish trend as bears target the next key support level at $3.69, which is about 30% below the current level. On the flip side, a move above $6.0 will invalidate this view.
