The THETA price has had a muted response to Ethereum’s best trading day of 2021 and is still struggling for direction above its key moving average.
THETA Token is last trading at $7.0140, higher by +$0.0085 (+1.20%).
The 17th ranked cryptocurrency currently has a market cap of just over $7 billion. However, Internet Computer (ICP) is close behind and snapping at its heels, following its recent pump.
THETA token powers the blockchain of the same name. THETA aims to revolutionise the video streaming industry, offering creators a better experience and higher financial rewards.
The project has a heavyweight team behind it. It counts Twitch co-founder Justin Kan and Steve Chen, co-founder of youtube, as advisors. Furthermore, the backers of the project include the investment arms of Samsung and Sony.
Despite the impressive credentials, the THETA price has struggled of late like much of the market. Last week, When Bitcoin traded below $30,000, it triggered follow through liquidation of altcoins. Subsequently, THETA nose-dived 40% in the first two days of the week and tumbling below the 200-day moving average at $6.1970.
Luckily, the token did stage a recovery and finished last Tuesday above the important average. However, the price has remained pinned to the 200 DMA and traded below it in 6 out of the last 7 days. Notably, it is yet to close below it this year. Therefore, this should be viewed as a significant area of support.
That being said, ETH added over 17% yesterday, its best percentage gain in 2021. On that basis, I would expect more from THETA than just holding support.
THETA Token outlook
Looking at the daily chart, we can see that the THETA price has been trading in a wide but narrowing wedge pattern. The top end of the wedge is now at $9.88 and, coincidently, adjacent to the 100-day moving average at $9.876. I would consider this the preeminent resistance level for THETA.
As long as the price stays within this wedge, it doesn’t give much room for a prediction. Of course, there will be opportunities to trade within the narrowing channel. However, long term projection will only arise once the price breaks free from the stranglehold,
Until that time, the THETA price may continue to trade broadly sideways.
THETA price chart (Daily)
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