Theta Price Sits and Waits at a Key Support. Now What?

Theta price has struggled in the past few months. The token is trading at $4.25, which is about 74.50% below the highest level on record. Its total market capitalization has declined to more than $4.2 billion, making it the 44th biggest cryptocurrency. This makes it a notable fallen angel since it was once among the top 20 biggest coins in the world.

Theta is a blockchain platform that is in the entertainment and video delivery industry. The network enables developers to simplify their video delivery options. It seeks to replace the traditional approach of video uploading that involves a centralized platform. 

Its goal is not to be an alternative to YouTube and other platforms. Indeed, Google, the parent company of YouTube is one of the enterprise validator nodes for the platform. The others include Samsung, Binance, and Sony.

Still, a closer look at the network shows why the Theta price has struggled in the past few days. For one, as you can see in this explorer, the total number of transactions in the network has crashed in the past few days.

Theta price forecast

The daily chart shows that the Theta price has struggled substantially in the past few months. The price is currently slightly below the descending trendline that is shown in blue. It is also slightly above the key support level that is shown in black. The price has also moved below the 25-day and 50-day moving averages. It has also formed a small bearish flag pattern. 

Therefore, the coin will likely have a bearish breakout in the coming days. This view will be confirmed if it manages to move below the key support at $3.65, which is the lower side of the descending triangle pattern.