Trade Recommendation: Theta Token (THETA)

Theta Token

Theta Token (THETA/BTC) is a market that’s ripe for bottom picking. After printing a 2019 high of 0.00005229 on March 19th, the cryptocurrency went into a downward spiral. On June 26th, Theta Token plunged to as low as 0.00000902. At that point, the crypto token lost over 82% of its value from the 2019 top.

Nevertheless, bulls appear to be respecting a key demand area. This is the reason why we’re interested in this market.

Technical analysis shows that THETA/BTC is defending support of 0.000011. We have this view because even though bears breached 0.000011 on June 26th, bulls managed to recover that level on July 17th. The price action tells us that the move below the support is likely to be a false break. We’ll get the confirmation as soon as Theta Token stabilizes above 0.000011.

So far, the market is trading above that demand area. In addition to that, technical indicators favor the bulls. The daily RSI is showing that bullish momentum is on the up and up. Lastly, volume has been anemic. The thin volume is bullish as it suggests that participants are no longer interested in dumping positions at current levels.

The strategy is to buy as close to 0.000011 as possible. As long as Theta Token stays above this level, it will likely rally to our initial target of 0.0000165. Take that out and 0.000022 is next.

The process may take less than a month.

Three-Day Chart of Theta Token/Bitcoin on Binance

Theta Token crypto chart
As of this writing, the Theta Token/Bitcoin pair is trading at 0.00001141 on Binance.

Summary of Strategy

Buy: As close to 0.000011 as possible.
Targets: 0.0000165 and 0.000022.
Stop: 0.0000105

 

Disclaimer: The writer owns bitcoin, Ethereum, and other cryptocurrencies. He holds investment positions in the coins but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.

Kiril is a CFA Charterholder and financial professional with 5+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and funds, as he does his own crypto research and is a Product Manager at Mitre Media. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.