• Theta price registers the best five-day gain since March 11 as the cryptocurrency explodes off the 78.6% Fibonacci retracement.
  • THETA holds the strategically important 50-week simple moving average (SMA), maintaining the uptrend from March 2020.
  • Commanding resistance begins at $7.00, suggesting the easy money has been made.

Theta price printed a new correction low on July 20, undercutting the May 19 low of $3.70 and the 78.6% retracement level of $3.54 before rallying 100% into yesterday’s high. The convergence of key resistance levels prevented an extension of the rally and revealed the struggles for THETA moving forward. With the resistance firm and near, the easy money has been made in the cryptocurrency.

Theta price overcomes the storm to drive the cryptocurrency market higher

Theta price corrected almost 80% from the April high of $16.61, retracing 78.6% of the advance that began in March 2020 and recording the most oversold reading on the daily Relative Strength Index (RSI) since November 2018. 

The THETA response to the remarkable decline was a successful test of the May 19 crash, followed by a 68% rally from July 21 to July 25, marking the third-best five-day gain since December 2018 and a renewal of commitment and emotion in THETA.

Yesterday the THETA rally concluded with an expansive reversal after Theta price struck overwhelming resistance. The resistance combines the 50-day simple moving average (SMA) at $6.59, the 200-day SMA at $6.98, the April descending trend line at $7.56 and a range of price congestion beginning with the April 23 low at $7.16. Adding to the weight of the resistance is the triggering of a bearish Death Cross pattern on July 23.

With the presence of the THETA price barrier, Theta price faces a new challenge that will dictate a period of consolidation to release the price compression of the market-leading 100% gain with the specific goal of establishing the technical foundation to turn the brief THETA rally into a sustainable advance.

Points of support include the June 22 low of $5.21 and the May 23 low of $4.54. A failure to control the pullback to the May 23 low raises the odds that the THETA rally was a dead cat bounce, and a new correction low could be in the future. 

Based on the impulsiveness of the rally on a historical basis and relative to the weaker rebounds during the April-June correction, Theta price is not currently at risk of a new low.

THETA/USD daily chart

THETA/USD daily chart

To change the cautious short-term outlook, Theta price needs a daily close above $7.75. It would signal that the altcoin is positioned to extend the bounce into an advance, targeting another range of resistance from $9.70 to $10.90, equaling a 40% return up to the upper limit of the range.

The Theta price rally of over 100% from the July low changed the entire price structure. It easily surpassed the gains of previous bounces during the three-month correction, proving the meaning of impulsiveness and the introduction of a trend change. In the short term, THETA encounters a technical challenge between $7.10 and $7.75. Hence, investors need to be patient in the coming days and weeks to let the next stage of opportunity to materialize. 


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin and altcoins are hit by biggest crypto hack in history

Bitcoin and altcoins are hit by biggest crypto hack in history

Bitcoin holds steady above $95,000, while crypto market capitalization excluding BTC decreases to $1.18 trillion on Monday. Analysts note that institutional interest in Bitcoin is likely overestimated through inflow data since it includes nearly 56% of BTC tied to arbitrage strategies.

More Cryptocurrencies News
Bitcoin Price Forecast: BTC standoff continues

Bitcoin Price Forecast: BTC standoff continues

Bitcoin has been consolidating between $94,000 and $100,000 since early February. Amid this consolidation, investor sentiment remains indecisive, with US spot ETFs recording a $540 million net outflow last week, signaling institutional demand weakness. 

More Bitcoin News
Solana drops below $160, liquidating $26 million in leverage as negative funding rate weighs in

Solana drops below $160, liquidating $26 million in leverage as negative funding rate weighs in

Solana price extends its decline and trades around $160 on Monday after falling over 11% last week. The recent correction in SOL has triggered a wave of over $26 million in liquidations in the last 24 hours and $110 million last week.

More Solana News
Dogecoin Price Forecast: DOGE bears remain strong despite Elon Musk’s endorsement

Dogecoin Price Forecast: DOGE bears remain strong despite Elon Musk’s endorsement

Dogecoin extends its decline, trading around $0.23 on Monday after falling 8.55% last week. Coinglass’ long-to-short ratio for DOGE reads below one, indicating more traders are betting for a correction while the technical outlook projects a pullback toward the $0.20 level. 

More Dogecoin News
Bitcoin: BTC demand and liquidity conditions remain weak

Bitcoin: BTC demand and liquidity conditions remain weak

Bitcoin price has been consolidating between $94,000 and $100,000 since early February, hovering around $98,000 at the time of writing on Friday. Despite this consolidation, US Bitcoin spot ETFs data recorded a total net outflow of $489.60 million until Thursday, hinting signs of weakness among institutional investors. 

Read full analysis
The Best brokers to trade EUR/USD

The Best brokers to trade EUR/USD

SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.

Read More

BTC

ETH

XRP