THETA prices take a setback to the $1.15 support level increasing the possibility of a double bottom pattern formation. Should you expect a reversal? Key technical points:
THETA prices have fallen 11% in the last 24 hours.
The RSI values surge in comparison to the previous dip at $1.17.
The 24-hour trading volume of Theta Network is $93 Million.
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