Before the web3 cycle kicks off, let's look at a few tokens to find the most profitable one! Read more to find if LINK or THETA will lead the web3 category this year!
A lot of cryptocurrencies are in a firm downtrend for the past three months. In this technical analysis, we will use some technical indicators to observe if there is a chance for a reversal for Chainlink (LINK) and Theta Network (THETA).
LINK/USDT on a 3-day Chart
LINK is in a clean downtrend ever since the beginning of November, but also in a much bigger range that has been formed since May 2021.
Yesterday, it took the marked July lows and the price is currently bouncing off it a bit.
If LINK loses the current support level because many retests of support are often bearish, then it could even go towards 7-8$ and it would possibly search for liquidity below the marked lows.
However, if bulls step in at these prices and push LINK higher, a move towards the marked D1 supply above could be on the cards. The reaction at that point will probably dictate future price movements.
Note that the EMA’s are also in a downtrend and most often provide resistance on the way up.
THETA/USDT on a Daily Chart
Like LINK, THETA is also in a downtrend for months now.
The run-up during the first quarter of 2021 was an amazing time for those bullish on THETA, but then a massive correction came in May.
THETA printed a range low in May and a range high a few weeks later in June. Afterward, the price was bouncing up and down inside that range.
What is bearish at this point is that THETA is currently trading below this range, after dropping below it in January and a bearish retest in February.
A reversion of the current trend can only be confirmed after a range low reclaim, which is visualized by the squiggly.
If bulls are too weak, THETA might even fall back down to a former base down below, between ~$1.20 and $1.70.
The coming weeks will be quite telling for THETA, one way or another.
Summary
- LINK has been in a downtrend for months and yesterday it took the May lows. Bulls need to step in at this point, otherwise, lower prices are to be expected.
- THETA already broke down from the range lows and did a bearish retest. Reclaim of the broken range low is needed at least for a (relief) rally, otherwise, THETA will trade lower during the coming weeks.
Keep in mind that the above ideas are solely the writer’s thoughts. Never take anything for granted and always do your own research.
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators. This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice. The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap. CoinMarketCap is not responsible for the success or authenticity of any project, we aim to act as a neutral informational resource for end-users.
