Why this week is crucial for THETA
In the late hours on Friday, users had issues with their THETA wallet balance, however, the network didn’t suffer an impact and the UI glitch was fixed. Post the scare of a hack, the price was up nearly 4%, and the trade volume has dropped by 21% in the last 24 hours. The dropping trade volume could signal the beginning of a correction or rangebound price action, over 17% away from the ATH. Analysts are predicting a drop below the $10 level if the price drop ensues.
Based on THETA’s price charts and trends, historically there may be a decline in the price based on price trends. The return on THETA’s price in the past is evidence that a price rally if it starts at the current level may lead to a double-digit rally.
Based on ROI in 2020 and 2019, this year the return is 515%. There is room for vertical growth in the price of the altcoin and based on the price trend, the last time such a price action occurred was in December 2020 in which the price increased by 172% from $0.65 to $1.77. Based on such past growth, it is likely that the current price action is not conclusive to declare this as the consolidation phase.
Though there is an upside, it may be limited. If a correction in price occurred, and it dropped below the $10 level, there may be a cascading sell-off below $7. Currently, the weekly returns are nearly 5% and the recent integration with Cinedigm may have given it the needed boost since Cinedigm has now integrated native TFUEL micropayments. This boost may have led to a recovery in the price that dropped as a result of the 3.0 launch delay. However, the recovery may not be complete until the price crosses the $13 level based on the price chart.
Based on the above price chart from Coinlib, Theta’s price is currently over 20% away from the ATH. THETA’s price rally hasn’t ended yet. Despite a slowdown in the price action post-launch, there is an anticipation that the rally will be extended based on the increasing market capitalization and trade volume in top markets on Binance and Huobi. THETA’s price is rallying towards the next ATH based on the above metrics and this may be the ideal time for retail traders to buy on spot exchanges.