The THETA Token price has largely slept through altcoin summer, and despite a decent bounce, is still 60% below its all-time high. Furthermore, THETA cannot seem to escape the gravitational pull of the 200-day moving average at $6.5729, and this may be a sign the rally has run its course for now.
THETA (THETA/USD), the decentralized video-streaming network, aims to disrupt the streaming industry and bridge the gap between content creators and their end-users. Launched in March 2019, THETA has drawn investment from tech giants Samsung Next and Sony innovation fund and counts the co-founder of Twitch and co-founder of Youtube amongst its advisors. This impressive pedigree caused retail traders to flock to THETA earlier this year, and between January and May, the token gained 800% to a record price of $16.6117. However, when the altcoin bubble burst in May, THETA lost 80% of its value in the two months that followed before turning higher this month.
Although the THETA price increased by 130% between the 20th of July and the 16th of August, it is still trailing many of its peers, which have broken out to the upside. On the 16th, the token attempted to clear trend resistance, briefly piercing the line at $8.1700. However, the pop to $8.4891 failed to attract follow-through buying, and the price reversed back into the range. As a result, THETA was forced out of its uptrend and is now hugging the major support of the 200 DMA.
The daily chart shows that last week, the THETA price lost trend line support at $7.2000 and slid beneath the 100 DMA at $6.9353, and the 50-day at $6.7577. Furthermore, in the last few days, the price has been nudging the 200 DMA at $6.5728, although it has managed to close above the indicator. A close below the $6.5728 could instigate a sharp selloff that targets July’s $3.4900 low. This outlook remains probable unless the token price climbs above the former trend line support, now at $7.8000. Not to mention, if the price advances beyond $8.4500, the outlook improves considerably, suggesting THETA has finally broken out to the upside.
THETA Coin Price Chart (Daily)
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