THETA Price Analysis: Potential Retracement May Tumble Prices By 24%

As the largest cryptocurrency, Bitcoin lost the $23000 support; the market is again building a negative sentiment, pushing several altcoins on a losing path. However, earlier today, the THETA price surged 7% with a decisive breakout from this resistance, but later the price reverted entirely, and by the press time, it showed a 5.33% loss. Moreover, such supply pressure at the $1.5 chart level indicates a possible correction.

Key points

• The 20-and-50-day EMA is on the verge of a bullish crossover
• The $1.317 breakdown will open the path to $1.065 support
• The intraday trading volume in the THETA is $179.7 Million, indicating a 114.5% gain.

Source- Tradingview

While several cryptocurrencies broke out of their accumulation phase and significantly recovered in July, the THETA/USDT pair remained trapped in a range-bound rally. This consolidation phase is stretched from $1.5 to $1.065 marks.

Furthermore, the THETA price has resonated inside this range for nearly three months, and while doing so, it retested its barriers multiple times. Thus, the technical chart indicates the market participants react to the pattern’s levels.

Amid the recent recovery in the crypto market, the THETA price took a sudden turn around from the $1.14 mark and surged 31% higher. Furthermore, this run-up tagged overhead resistance of $1.5, preparing for another breakout attempt.

Today, the coin chart showed a long-wick rejection at $1.5 resistance indicating the sellers continue to defend this level. So far, the THETA price reflects a 6.68% loss from the top resistance and currently trades at 1.398. 

If the selling pressure persists, the coin price may soon breach the midline support zone of $1.34-$1.317, offering an additional confirmation for further downfall. With this, the altcoin should complete another bear cycle within the pattern as it will likely hit the bottom support of $1.065. 

Technical Indicators

The 20-and-50-day EMA slope nearing a bullish crossover at the $1.317 level provides confluence support to coin buyers. This crossover should encourage price recovery to breach the $1.5 mark.

A constant rise in daily-RSI slope despite sideways price action signals underlying bullishness. This bullish divergence indicates the price may eventually breach the overhead resistance.

• Resistance levels- $1.5 and $1.67
• Support levels- $1.3 and $1.06