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Following a steady decline in December, the Theta network coin sank to a new 2022 low of $0.715. However, with the recent uncertainty in the market, this altcoin turned to a sideways path and began to consolidate in a short range. After more than three weeks of consolidation, prices rallied twice from the $0.715 level, indicating that buyers were well supported. On the daily time frame chart, this double retest at the same level indicated the formation of a double bottom pattern.
- In response to a double bottom pattern, the break of the $0.8 resistance can lift the THETA by 8.75%.
- Failure of the buyers to hold above the $0.8 barrier could undermine the bullish thesis.
- Intraday trading volume on THETA is $6.9 million, indicating a loss of 13%.
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The double bottom pattern is one of the most commonly found bullish reversal patterns at the bottom of the market and provides an excellent entry opportunity for potential buyers. Amid the recent new year rally in the crypto market, the THETA prices it rose a further 7.3% and reached the current price of $0.765.
With sustained buying, the coin’s price should rise and challenge the resistance at the neckline of $0.8. Therefore, a possible break of this resistance to the upside will accelerate the buying momentum and provide upside for the buyers to continue their rally.
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This breakout could push the THETA price up 8.75% higher to reach the $0.87 mark.
Conversely, if the coin’s price were to reject from the $0.8 barrier, the altcoin would remain stuck in the consolidation phase for a few more sessions.
Relative Strength Index: Contrary to sideways price action, the pending daily RSI the higher rise indicates the growing bullish momentum in the market. Therefore, this bullish divergence aligned with the aforementioned reversal pattern increases the probability of an upcoming rally.
EMA: The coin’s rising price has recently retraced the slope from the 20-day EMA, which offers an added bonus for long buyers.
Theta Coin Intraday Price Levels
- Spot price: $0.767
- Trend: bearish
- Volatility: Medium
- Resistance Level: $0.8 and $0.87
- Support Level: $0.757 and $0.71
The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrency. The author or publication has no responsibility for your personal financial loss.