Market downturn hits Theta hard, keeping it below $3
The Theta Network (THETA) cryptocurrency token continues to struggle with a 1.76% decline today, taking the Theta rate to $2.73 (THETA/USD). Theta fell below $3 again on Friday, and it may struggle to break above that level anytime soon.
The fall of Theta in 2022
$3 has become the new resistance level for Theta since January 20and, which was disappointing for beta investors, as the crypto spent most of the last year above the $4 level. The entire cryptocurrency market has suffered this year. Last Christmas there was a small spike in the market, but that was followed by a downturn from which most of the market never recovered.
Many investors expected to see a boost in the crypto market heading into the new year, but that didn’t quite happen. Theta has continued to fall from last year’s stellar performance, and it is now struggling to break above the $3 level.
Theta has only topped $4 twice this year, with the last instance in early February not lasting long. With the rate currently so low, this means Theta is unlikely to see the $4 level again for some time unless there is a massive market shift.
Where could Theta go?
Investors are advised to exercise caution with Theta as its movement shows less of a volatile direction at the moment and more simply a downtrend. Anyone interested in investing in this crypto may want to watch it carefully for signs that they may turn around and buy at its low rates to make a profit once it turns bullish again. However, we don’t expect that to happen until the broader market sees an improvement.
Looking at the market leader, Bitcoin (BTC), we see a more volatile move as it has been trading between $45,000 and $35,000 over the past month. The fact that Theta has not seen a similar wide range of movements during this period means that Theta is struggling to hold its value despite the launch of a new cryptocurrency under the Theta umbrella – TDrop. What was supposed to be a big new release for Theta turned out to be unimpressive and disappointing, having no real impact on Theta Fuel or Theta Network tokens.
Theta is likely to continue its slowdown and struggle against the $3 level for now, but keep watching here, and we’ll keep you updated.