The crypto markets have had a rough year that has been compounded by unexpected events that have accelerated the selling and price drops of popular altcoins such as Theta Network (THETA).
2022 kicked off with a crypto-wide pullback led by Bitcoin, which had just hit a new all-time high of $69k in November 2021. Then in mid-May, the collapse of LUNA and UST happened to kickstart more selling. And before the dust had settled, FTX collapsed in November.
Theta Network’s (THETA) Falling Wedge Could Mean a Retest of $1 in 2023
Like all other altcoins, Theta Network (THETA) was adversely affected by the events of 2022. The crash of LUNA and UST caused THETA/USDT to drop to a new low of $1.027, and the collapse of FTX was the final nail that sent THETA below $1.
The one-day chart THETA/USDT chart below, courtesy of Tradingview.com, shows that the digital asset remains in bearish territory below the 50-day (white), 100-day (yellow) and 200-day (green) moving averages.
At the time of writing, Theta Network (THETA) is trading at $0.716 and within a falling wedge that could signal a bullish relief rally with the new year towards the crucial $1 price level.
The Falling Wedge Could Be Invalidated Due to the General Bearish Sentiment
However, a breakdown of the falling wedge would mean more losses for Theta Network (THETA). The general mood in the crypto-verse is one of caution due to the anticipation of a global recession in 2023 that will definitely affect the value of Bitcoin and altcoins such as Theta Networks (THETA).
In this case, Theta Network (THETA) will have to rely on support levels last seen in mid-2020. They include:
- $0.589
- $0.284
- $0.264
- $0.20