Price Analysis

Key Reasons Why Theta Price May Prolong Recovery By 40%

The Theta price riding a high momentum rally amid rising volume and a surge in future open interest, Enter now?

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Published 26 Feb, 2024 | 08:52:29 PM UTC

Key Reasons Why Theta Price May Prolong Recovery By 40%

Highlights

A Theta Price breakout from the neckline of an inverted head and shoulder pattern indicates a potential rally beyond $2.
Data from Coinglass shows that Theta Futures Open Interest witnessed a 137% increase, highlighting strong market confidence.
The intraday trading volume in Theta is $231.9 Billion, indicating a 401% gain.

Theta Price: The crypto market witnessed a renewed recovery force as the Bitcoin price rebounded from the $50600 support last weekend. The positive turnaround propelled several altcoins back to recovery sentiment including Theta. The coin price surged from $1.17 to $1.66 within three days to register 42% growth, the recent price breached the resistance trendline of inverted head and shoulder pattern indicating the asset is poised for further growth.

Also Read: Crypto Market Analysis As Metaverse Tokens Regain Momentum: THETA, MANA, APE

Is Theta Price Heading to $2?

Theta, the native token of a Layer 1 blockchain entered an aggressive recovery mode earlier this month when the price rebounded from $0.93. This bullish recovery surged the coin price by 80% within three weeks to currently trade at $1.67.

The increasing Trading Volume and surge in futures open interest suggest robust and sustainable growth in the Theta price. Data from Coinglass, a prominent crypto derivatives data provider, shows Theta Futures Open Interest escalating from a low of $16.71 million in January to a recent apex of $39.56 million. This marks an impressive growth of approximately 137% indicating the growing investor enthusiasm and engagement in Theta.

Theta’s Potential Surge Underpinned by Classic Chart Pattern

With an intraday gain of 20%, the Theta price provides a decisive breakout from the neckline resistance of an Inverted Head And Shoulder Pattern. This chart commonly spotted at major market bottom patterns provides an early signal to a trend reversal and long entry opportunity. Currently trading at $1.67, if the altcoin shows sustainability above $1.5, the buyers will obtain suitable support to prolong recovery. Under the influence of this chart pattern, the Theta price should chase 38-40% and hit the $2.31 mark.

Also Read: Bitcoin, ETH, XRP Saw $5.7 Bln Inflows Ahead Big Developments

Technical Indicator

Bollinger Band: The Bollinger Band indicator challenge on the upside reflects the aggressive momentum in this asset.
Average Directional Index: The ADX slope at 39% indicates the buyers may trigger a minor pullback to regain strength and maintain a sustainable rally.

Sahil Mahadik

Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading

Published by

Sahil Mahadik

Published 26 Feb, 2024 | 08:52:29 PM

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