The Theta price declined today as investors continued to worry about high-interest rates and the decision by Elon Musk to stop Bitcoin payments. THETA is trading at $9.6835, which is about 40% below its year-to-date high of $15.88.
The background: Theta is a blockchain project focused on the video industry. The platform’s goal is to decentralize the field of video hosting, not to replace products like YouTube. It achieves this by letting developers build video products that are hosted by millions of people globally.
A few months ago, Theta was one of the best performing digital currencies as more people embraced the technology. However, in the past few weeks, the price has struggled to find direction as demand started to wane.
Like all digital currencies, Theta declined in the overnight session as worries of higher interest rates continued. It also fell after Elon Musk said that his company would not accept Bitcoin. This was notable since Tesla is the most high-profile company to accept the currency. So, what next for Theta going forward?
Theta price forecast
On the four-hour chart, we see that Theta has not had a clear direction in the past few weeks. The price declined sharply overnight and has pared back some of those losses. It has also formed a large head and shoulders pattern whose neckline is at $7.3158. The decline is also being supported by the 50-day and 25-day exponential moving averages. Therefore, while a possible bounce is possible, I suspect that the price may soon drop and retest $7.3158, which is about 23% below the current level. This thesis will be invalidated if the price rises above$11.