THETA surges 19% despite market downtrend: What’s next?
- Theta recorded double-digit gains despite market downturn as its volume skyrocketed.
- THETA/USD gained 19.2% on the day before retracing slightly.
- The cryptocurrency faces strong resistance above the $2.30 level.
Theta managed to massively outperform the crypto market, recording gains of close to 20% in the past 24-hours. This price surge made Theta by far the best-performing market cap top 20 cryptocurrency in the past 24 hours. So, should you buy Theta?
Fundamental analysis: Theta fundamentals got stronger after its native cryptocurrency listing on Crypto.com
Theta (THETA) is a blockchain-powered network built for video streaming. The project launched in March 2019, and is advised by Steve Chen, co-founder of YouTube, as well as Justin Kan, co-founder of Twitch. Theta’s native cryptocurrency token, THETA, performs various governance tasks. Developers say that Theta aims to disrupt the video streaming industry and change its poor centralized infrastructure and high operating costs.
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Even though almost every single top cryptocurrency lost upwards of 5% on the day, Theta managed to resist the downturn and push towards its all-time highs. This has, in turn, greatly improved Theta’s overall outlook. However, an important thing to note is that Theta’s fundamentals were already strong, mostly because of its addition to the Crypto.com platform.
THETA managed to gain 8.98% week-over-week, outpacing BTC‘s loss of 14.38% and ETH‘s loss of 6.05%. At the time of writing, THETA is trading for $2.245, representing a month-over-month price increase of 4.92%. The cryptocurrency boasts a value of $2.312 billion, and is currently the 19th largest cryptocurrency by market cap.
THETA/USD technical analysis: THETA pushes towards its all-time highs on incredible volume
THETA has broken the slowly-moving downtrend it was in after reaching new all-time highs. Today’s move showed that its all-time highs are not unreachable. While its price did reach $2.495 at one point, it quickly retraced as the resistance THETA faces above $2.30 is very strong. If THETA bulls intend on breaking through this zone, they would have to strike fast and with incredible volume.
Instead of many individual resistance lines, THETA’s upside is guarded by a zone that spans from the $2.30 level and all to the all-time high level of 2.602. On the other hand, its downside is guarded first by the 21-day EMA (which is its current immediate support) and then by its $23.6% Fib retracement and its 50-day EMA (which helped with initiating the upswing).
THETA’s RSI on the daily time-frame is currently on the rise, with its current value sitting at 62.40.
If we zoom in to THETA’s hourly time-frame, we can see how the cryptocurrency broke its triangle formation, confirmed its position above it and then continued to move towards its recent highs. A couple of hours after that, the high of $2.325 was passed and THETA continued towards its all-time highs. However, THETA bulls reached exhaustion around the $2.43 mark, which prompted a swift pullback.
THETA’s downside is protected by the 21-hour EMA (which held up for now) as well as the 23.6% Fib retracement level of $2.137.