THETA Technical Analysis
Detailed THETA Technical Analysis: Identifying Key Breakout and Breakdown Zones
Welcome back to another edition of The Crypto City Trading Newsletter, your go-to source for in-depth technical analysis and expert insights into the dynamic world of cryptocurrency trading. Today we are focusing on the Daily price action of THETA/USDT.
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Total THETA Market Cap: $1,525,997,523
Circulating Supply: 1,000,000,000 THETA
Total Supply: 1,000,000,000 THETA
Max Supply: 1,000,000,000 THETA
Now moving towards the analysis.
The price of THETA is currently trading at $1.525. After rejection from the trend line and resistance level at $2.502 the falls at monthly support zone (Green) at $1.338 — $1.434 and now trying to bounce from here. The price is trading under the trend line (Red) for approximately 102 days. The chart shows a bearish trend, as the price under EMA 200 (Black) is also showing a bearish trend.
Key Zones and Levels
1. Upper Weekly Zone (Blue): $3.820 — $4.065
- This area represents a significant resistance level. Historical price action shows this zone has been tested but not breached, indicating strong selling pressure around these levels.
2.Middle Weekly Zone(Yellow): $1.705 — $1.918
- A crucial resistance zone that aligns with a descending trend line. This area has seen multiple tests but has failed to hold as support, highlighting its importance in the current bearish trend.
3. Monthly Support Zone(Green): $1.338 — $1.918
- Currently acting as a support level, this zone has recently seen a price bounce, indicating strong buying interest. Holding above this level is key for any bullish momentum.
4.Lower Weekly Zone(Pink): $0.860 — $0.956
- This is a major support zone that has been tested multiple times previously, as a potential lower boundary if the price continues its downward trend.
5. Descending Trend Line (Red)
- The chart clearly illustrates a descending trend line from mid-April to the current date. This line shows the market’s bearish sentiment as THETA consistently makes lower highs.
6. 2 Resistance Levels $3.106 and $2.502
- These 2 resistance levels acted very strongly as the price was rejected multiple times from these levels.
7. Support Level $1.142
- Historically this level was tested multiple times and acted as a strong support and resistance level.
Price Action
Current Price: $1.525
- The price is trading just above the monthly support zone ($1.434 to $1.338). A recent bounce from this zone suggests some bullish sentiment at this level.
Volume: 1.179M
- An increase in volume can indicate a potential reversal or continuation of the current trend. Monitoring volume alongside price action can provide more insights.
Potential Scenarios
There are 2 scenarios
Bullish Scenario:
- If THETA flips the weekly zone (Yellow) at $1.705 to $1.918 and breaks the descending trend line we could see a massive price pump.
- Sustained bullish momentum could push the price towards the upper weekly zone (Blue) at $3.820 to $4.065.
Bearish Scenario:
- Failing to maintain above the monthly support zone(Yellow) could see the price drop to $1.142.
- A further breakdown may lead to testing the lower weekly zone (Pink) at $0.860 to $0.956.
Technical Indicators
Based on technical indicators on a daily time frame
- The relative Strength Index (RSI) value is at 32.918 (Neutral)
- Momentum is at -0.289 signaling a (Buy)
- MACD Level (12, 26) is at -0.183 signaling (Sell)
- Exponential Moving Average (50): 1.992 (Sell)
- Exponential Moving Average (100): 2.050 (Sell)
- Simple Moving Average (100): 2.322 (Sell)
- Exponential Moving Average (200): 1.860 (Sell)
- Ichimoku Base Line (9, 26, 52, 26): 1.869 (Neutral)
- Volume Weighted Moving Average (20): 1.798 (Sell)
- Hull Moving Average (9): 1.432 (Buyl)
Interpretation
Theta Token (THETA/USDT) is currently experiencing strong bearish momentum. While some oscillators suggest potential oversold conditions, the overall sentiment remains bearish with strong sell signals from moving averages. Traders should remain cautious and look for confirmation of trend reversals before making significant buy decisions.
Liquidation Heatmap
Trade Setup
Theta/USDT Setup. After a confirmed breakout from the marked zone in the green and trend line, we could take an entry at 1.975.
Remember stop loss is your friend. Everything is on the chart.
Entry 1.975
S.L 1.614
T.P 1 2.160
T.P 2 2.492
T.P 3 3.089
T.P 4 3.820
Conclusion
Theta Token is at a pivotal point. The market is showing signs of potential reversal, but maintaining current support levels is crucial. Traders should watch for breakouts above the descending trend line and increased volume to confirm any bullish momentum.
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This detailed analysis provides a comprehensive understanding of the current market structure and potential scenarios. Traders can use these insights to make informed decisions and effectively navigate the market.
Stay tuned to The Crypto City Trading Newsletter for more in-depth analyses, market insights, and expert guidance. As always, we strive to empower you with the knowledge and tools needed to navigate the fast-paced world of cryptocurrency trading. Happy trading!
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