THETA Technical Analysis: Price Drop To $1.5 Teases Bullish Reversal
Table of contents
Key Technical Points:
Past Performance of THETA
As warned in our previous analysis, the THETA prices reached the overhead resistance at $1.73, but the increased supply inflow resulted in a bearish turnaround. The overnight price drop of 5.95% in Theta Network prices resulted in a bearish engulfing candlestick and retests the psychological mark of $1.50. However, the retracement comes as the retest of the broken consolidation range teasing a potential bullish reversal.
Source - Tradingview
THETA Technical Analysis
The THETA technical chart displays the daily candle forming a tail and avoiding a drop below the $1.47 horizontal level. Hence, traders hoping to ride a fallout should wait for a candle to close below $1.47. As the market price falls, the possibility of a bullish crossover between the 50 and 100-day SMA decreases due to the increased supply pressure.
The daily-RSI slope dips in the nearly overbought zone and cracks below the 14-day average line. Hence the technical indicators display an increase in the underlying bearish sentiments.
Moreover, the MACD indicator displays a decrease in the bullish gap between the MACD and signal lines, warning of a bearish crossover possibility.
In a nutshell, the THETA technical analysis keeps an overall neutral viewpoint as the possibility of a reversal from $1.50 stands.
Upcoming Trend
If the THETA prices take a bullish turnaround from the $1.50 mark, a lateral trend is possible with the $1.75 mark as the overhead resistance.
However, a bearish continuation will test the 1000-day SMA near the $1.35 mark before reaching the psychological mark of $1.
Resistance Levels: $1.73 and $2
Support Levels: $1.50 and $1.35