The Theta price is bouncing back after falling by more than 30% yesterday. The altcoin is trading at $12.26, which is slightly above yesterday’s low of $10.30. Other fast-rising altcoins like Polkadot and IOTA have also plunged.
What happened: Theta has been the talk of town recently. In the past few weeks, its price has surged by more than 100% propelling it into the top-ten of the world’s biggest digital currencies in the world. Indeed, it has displaced the other big names like Bitcoin Cash and Litecoin. This performance has been because of the rising popularity of the video network, which has pushed up the ThetaFuel fees.
However, THETA has also dropped substantially in the past few sessions as many investors rush to take profit. Indeed, it has declined by more than 17% in the past 24 hours while Bitcoin and Ethereum have only dropped by more than 4%.
Theta has also dropped because of the rising bond yields, which are hinting to possible high-interest rates by the Federal Reserve.
Theta price forecast
In my last article about Theta, I predicted that it would drop and possibly retest the key support at $9.7. This prediction was correct since the currency declined to about $10. It has then bounced back as it goes through a relief rally as some investors buy the dips.
So, is it time to buy Theta? While the overall trend is bullish, there is a high probability that we have seen a top. This means that it has formed a dead cat bounce, which is usually a bearish sign. Therefore, we should not rule out further declines as the distribution phase starts. If this happens, the price will likely move to the standard pivot point at $8.6, which is 28% below the current level.
Don’t miss a beat! Follow us on Telegram and Twitter.
THETA chart
More content
- Download our latest quarterly market outlook for our longer-term trade ideas.
- Follow Crispus on Twitter.
- Do you enjoy reading our updates? Become a member today and access all restricted content. It is free to join.