Monday's AT: THETA, the streaming platform neglected by investors?

Monday’s AT: THETA, the streaming platform neglected by investors?

In this first analysis of the week, let’s take a look at THETA, a decentralized streaming platform. This platform has its own blockchain in order to solve some problems that some competitors may face (Twitch, YouTube). To obtain THETA, different means are possible: use the platform or provide your connection via the Edge Node or the Guardian Node. However, since the year 2021, THETA’s price seems to be in trouble. Let’s see together what are the levels to have in mind and the possible scenarios for the months to come.

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THETA’s return to 2020 prices?

Price of THETA cryptocurrency against the dollar on a weekly scale
Price of THETA against the dollar on a weekly scale

After an all time high at $15.88 in April 2021the course of THETA remained in a downtrend with descending lows and highs. Along the way, the asset had the opportunity to oscillate between 2.30 and the $4 from January to April 2021. However, this range period resulted in a bearish resolution, causing THETA to fall even further. Indeed, it came to tickle the symbolic dollar. Clearly, the trend is still bearish. There is still a long way to go before hoping for a weekly trend reversal. But then, what are the levels to monitor?

On theweekly scalethe upper key level is the lower bound of the range at $2.30. In the event that the price is led to return to this zone, the challenge is clear: to have a reintegration of the range of the first months of the year 2022. However, this will in no way confirm a trend reversal on a weekly scale. , but merely a temporary rally in buyers’ strength. Otherwise, a continuity of the selling force could result in a materialization of the latter on the lower limit of the old range in order to make it a resistance.

Besides a possible reintegration of the range in a rather bullish scenario, what are the levels to watch in the event of a decline on a weekly scale? First, let’s watch the 2020 resistance zone which sits at $0.752. It could serve as a support even if it has never been retested. In the event of a break in this, the levels to bear in mind are as follows:

To be clear, we are not there at all and the current downtrend does not in any way assure a return to these technical areas. However, it seems relevant to me to have different scenarios and key levels in mind to be prepared for the vagaries of the market. As long as THETA does not lose the $0.60 zone, there is no reason to go back to the lower levels.

A daily uptrend?

Daily price of THETA cryptocurrency against the dollar
THETA price against the dollar on a daily basis

On thedaily scale, we can see a price compression since May 13th. There is a crush in volatility which will lead to a clear uptrend or downtrend very soon. Although THETA recently recorded a higher peak and trough than the previous one, nothing is decided yet. The current target is a fence greater than $1.36 so that buyers can demonstrate their presence. This will certainly extend the start of the daily uptrend.

An upward resolution of this chart pattern will most likely lead us back to the top of the rebound that took place after the decline. It is located at $1.53. Thereafter, if THETA manages to register a new summit, we can consider new objectives on the short term which are:

  • The first supply zone with a return, at least, to 1.60 dollars.
  • Ideally, the top of the lower terminal which is in confluence with the second supply zone. This will make it possible to envisage a return, at least, to 2.28 dollars.

However, it is important to note that we would have a 68% increase. This rebound would be important in a bear market. It is therefore an optimistic scenario to bear in mind, but not to be taken for granted.

Conversely, a downward break in $1.06 will cause THETA to register a new descending low, signaling a potential downside reversal and weak buyers. As explained via the weekly chart, if the downtrend continues on THETA, the next step will most likely be a price stop at $0.75.

With THETA technical analysis coming to an end, you should remember that we are in a period of uncertainty with price compression. Although the trend is bearish on a weekly scale, we are witnessing the beginning of an uptrend on a daily basis. Nothing is decided yet the streaming platform token. There are levels to resume in order to hope for a return of the price to the levels mentioned in the analysis. So, let’s be ready for the different scenarios mentioned and adapt as best we can to the financial markets.

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