Analytics

THETA Price Analysis: THETA token struggles to break the critical resistance area, while short term target of $10 remains inevitable

  • THETA token is at the threshold of breaking above the resistance trend line
  • THETA token price bounced from a low of $7.39 to a high of $8.17 in Wednesday’s intraday session 
  • The THETA/BTC pair is trailing at 0.0002119 with a slight gain of 0.96% at press time

The announcement of the THETA Mainnet 3.0 upgrade on May 31st contributed to the price gaining 34% in merely three days. The current price of THETA is $8.10 established on the back of a 5.15% increase in the past 24 hours. In the past month, the price of THETA has declined by 26.35% while its accomplishments on the 1-year time frame mount to 2880%. 

The daily technical chart of THETA projects exhaustion in momentum as price action has teamed up with the oscillators to device hidden bearish divergence. While the price action is on the verge of breaking out from the resistance trend line, a break above the line seems unplausible at the moment. This is because the candlesticks have used the three white soldier patterns. Usually, such patterns dictate a minor pullback or the beginning of a consolidation phase. 

At present, the trend is converging between the 100 EMA serving temporary resistance and the 200 EMA serving temporary support. For a break above the current price, the bulls need to gear up and tackle the 100 EMA. 

Source: TradingView

Theta is facing rejection by 0.0618 FIB on the 4-hour chart 

Source: TradingView

Theta price chart on the 4-hour chart is hinting at the possibility of a minor pullback before the price marches towards the $10 target. 

As mentioned above, THETA is facing strong rejection by the 0.0618 FIB as evidenced by three consecutive efforts since the May bloodbath. The particular scenario has contributed to THETA fluctuating inside the ascending triangle pattern. 

A pullback will most probably cause THETA to retrace back at the FIB 0.0382 level which lies around $7.03. 

CONCLUSION: While the overall sentiment stays bullish, a pullback from the current price will only strengthen the momentum. At the current price level, THETA has successfully broken above its weekly and monthly highs. 

Investments in altcoins are subjected to market risks and bitcoin dominance. Investors should conduct due diligence before investing. 

SUPPORT : $6.97, $7.5

RESISTANCE : $8.20, $10

   

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