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Theta Token Bounces Off Support but Faces a Litmus Test to the Upside

Theta (THETA) Is Floundering Below the $3 Level Today with Another Drop

Posted Thursday, February 3, 2022 by
Timothy St. John • 2 min read

Theta (THETA) fell 7.11% today, which brings it down to $2.73 (THETA/USD). This cryptocurrency has had a lot of trouble lately trying to break through $3, which has become the new resistance level for the Theta Network. That’s been shocking to many investors, as Theta spent most of last year above the $4 level.

THETA/USD

What’s Keeping Theta Down?

Over and over again last year, week pointed out that Theta was a resilient cryptocurrency, managing to do well even when other cryptos fell below expected levels. This year, Theta has gone through a rough period. It’s only breached the $5 level once so far this year, and that was only briefly. It dropped heavily on January 20th and hasn’t been able to recover since then. Following that drop, Theta has hardly spent any time above $3, losing its resilient streak and making investors wonder when it’s going to surface again.

Theta is being hurt by an overall market downturn. We’re seeing low rates on Ethereum (ETH), Bitcoin (BTC), and other major cryptocurrencies, so it’s no wonder Theta is taking a hit as well. Many analysts expected that Theta would have turned around at this point, as the new TDrop token launched on February 1st. There was some excitement for Theta leading up to the launch, but before the token could hit the market, Theta took a dive, along with the rest of the cryptocurrency market.

Theta’s trade volume is up today, around 24%, with a trade volume of over $164 million. However, a lot of that is caused by investors selling off their tokens while hoping to not lose too much money on a crypto that doesn’t seem to be headed anywhere positive for a while.

TDrop (TDROP) did launch as it was supposed to, but it fell quickly following the launch. TDrop hit the market at $0.045 and then fell to $0.022, So unless there’s a massive shift in this crypto’s rate, we don’t expect it to have a very positive impact on the Theta Network or TFuel (TFUEL) tokens.

What Can We Expect for Theta?

The future is not looking very bright for Theta at this moment. We expect it to continue struggling just under the $3 level for a little while, unless there’s a major shift in the overall market, which would mean Bitcoin and Ethereum in particular, or unless there’s a positive shift for TDrop. Bullish movement there could buoy the rest of the Theta tokens.

If things turn around for Theta, it may push back beyond the $4 level, but that’s going to take a little while. At this rate, we don’t expect even a positive shift to propel Theta up to $4 in less than a week from when a bullish trend starts.

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