THETA Technical Analysis: Bullish Hope Sprouts Despite Downtrend

Key technical points:

Past Performance of THETA

THETA prices have maintained a falling trend within a bearish descending channel, resulting in a downfall of more than 70%. The descent breaches all the crucial EMAs and the psychological mark of $1.50 before taking support at $1.15. The bearish reversal forms an inverted rounding bottom pattern with a neckline at $1.15.

Source-Tradingview

THETA Technical Analysis 

THETA prices showcase a failed bullish trend as the bearish influence grows. However, the slight possibility of a double bottom pattern stands at the $1.15 support level, but bulls must get a lower price rejection for a successful formation.

The crucial daily EMAs – 50, 100, and 200-days maintain a falling trend in a descending order providing dynamic resistance to keep the bullish growth in check.

This RSI continues to decline and then dips into the oversold area, while the 14-day SMA serves as a dynamic resistance. In the wake of this recent reverse, a move was made to test the average line that is above the line of oversold.

The MACD and the signal line are believed to be constrained to a handful of positive retracings, which result in a shrinking of the spread of bears. If investors anticipate an upward trend on positive histograms, the probability of a bullish cross increases.

In short, the THETA technical analysis depicts the possibility of a bullish reversal with a double bottom formation.

Upcoming Trend

Currently, the THETA prices revert to the $1.15 support level as the sellers overtake the trend control suddenly. However, the RSI divergence at the support level increases the possibility of a double bottom pattern. Nonetheless, the traders must wait till the prices break above the $1.50 to avoid a bull trap.

Support Levels: $1.15 and $1

Resistance Levels: $1.50 and $1.75