Theta coin price analysis: THETA risks 34% dip as $6 support breaks

Theta coin price analysis: THETA risks 34% dip as $6 support breaks

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Bitcoin’s dump below $45k has triggered widespread losses, with THETA vulnerable to a potential downtrend to lows of $3.63

THETA coin has declined more than 12% in the past 24 hours to see its value touch lows of $5.47 as the broader crypto market begins a new week with losses across the board.

At the time of writing, THETA is trading around $5.54, with the downtrend pushing the cryptocurrency to seven-day losses of 16%, as shown by data from CoinGecko.

Across the crypto market, Bitcoin (BTC) price has dropped 7.6% over the past 24 hours to break below $45,000, while Ethereum (ETH) is trading around $3,112 after declining by about 9.4%.

Among the top ten cryptocurrencies by market cap, Solana (SOL), Cardano (ADA), and XRP are all seeing double-digit losses as bears push the total crypto market cap down by 6.7% to currently sit around $2.08 trillion.

THETA price outlook

Technical indicators on the daily chart suggest that THETA looks certain to continue with a negative trend given the bearish pennant formation seen on the daily chart.

The daily RSI is trending with a negative outlook below 50, while the daily MACD is increasing within the negative zone after a bearish crossover.

Looking at the chart, we see the price of THETA has broken below the 50-day moving average. The move has seen it lose the $6.14 anchor, with the THETA/USD pair retesting and breaching horizontal support at $5.59.

If the downward trajectory holds, Theta price could nosedive past the next demand zone around $4.97 (0.236 Fib level). In this case, bulls risk suffering losses to the next demand zone around $3.63 to bring losses from the $5.59 anchor to around 35%.

THETA/USD daily chart. Source: TradingView

On the upside, bulls could get a swift rebound if they use the widespread declines as an opportunity to buy the dip.

Such a scenario would see Theta price look to test resistance around $5.89 (0.382 Fib level), with sustained upward momentum likely to push prices above the $6 level towards the 0.5 Fib level ($6.64). From here buyers can target the 50 SMA ($6.90).