- The prices responded to over 21 days of consolidation with two bounce-backs from $0.715, confirming reliable buyer support. The dual retest formed a double bottom formation on the 24hr chart.
- Reactions to the double bottom formation would see breakouts from $0.8 resistance, triggering a potential 8.75% surge in THETA’s price.
- Meanwhile, buyer failure to sustain beyond $0.8 might limit the bullish projection. THETA’s intraday volume is $6.9M, suggesting a 13% drop.
December’s steady fall saw the Theta network token slumping to new 2022 lows of $0.715. Nonetheless, considering the latest uncertainty within the marketplace, the coin resorted to lateral moves and began consolidating within a constricted range.
The double bottom formation is among the common bullish reversal setups amid market bottoms and offers a lucrative entry for prospective buyers. The latest new year crypto market recovery saw THETA prices gaining 7.3% to current prices of $0.765.
Sustained buying would trigger more rallies for the alt, pushing THETA toward the $0.8 neckline resistance. Thus, a possible bullish break from this hurdle will amplify the buying strength, supporting buyer motives to extend the upward rally.
Such a breakout might trigger an 8.75% price rise in THETA, pushing toward the $0.87 region. Contrarily, rejections from the $0.8 region would see the alternative token trapped inside consolidations for some more sessions.
Further, THETA enthusiasts should assess the overall crypto market cues. That may help identify potential invalidation levels. The market saw brief upside movements over the past day. For instance, BTC gained 0.04% to explore $16,947 during this writing. Extending this revival would support THETA’s upward motives.
While the price action sees sideways, the daily-Relative Strength Index slope climbing higher shows the increasing bullish strength within the market. Therefore, this bullish divergence matched the reversal setup discussed above, increasing the chances of an imminent recovery.
The soaring THETA price reclaimed the 20day Exponential Moving Average lately, providing extra support for longer buyers.
THETA’s Intraday Levels
Spot price – $0.767
Trend – bearish
Volatility – medium
Resistance mark – $0.8, $0.87
Support mark – $0.757, $0.71