- The theta price fails to break the 200-day simple moving average (SMA) resistance, which puts the altcoin on a slight wedge on the upside.
- THETA breaks the downtrend in April and creates a new level of support to contain potential weaknesses.
- The daily Relative Strength Index (RSI) is not overbought and leaves room for the theta price to rally if the resistance is broken.
Theta price rallied impulsively for the first six days after its low on July 20, rising above 100% from the high of $ 7.60 on July 26. THETA didn’t close a day above $ 7.60 as the 200-day SMA magnet effect curbed price advances. By the time the digital coin can close above $ 7.75 for the day, it is doomed to continue swings along the 200-day SMA or retreat to the rising 50-day SMA.
Theta price looking for a catalyst, despite a strong market
At the July 20th low, theta price entered an extremely oversold state in the daily RSI, which formed the basis for the remarkable 100% rise over the next six days. However, THETA failed to capitalize on the initial momentum and broad market strength in order to achieve higher prices. As a result, the altcoin became frustrated by the 200-day SMA and descending trendline in April.
A second obstacle to improved theta price action is the robust resistance created by price congestion between $ 7.10 and $ 7.75, which extends to the April low of $ 7.16. THETA attempted to break the range on August 6, August 16, August 17 and today, but failed to close the day.
If theta price closes above $ 7.75, it should trigger a 26% rally to another impressive resistance range between $ 9.75 and $ 10.80, outlined by a large number of highs in May and early June . The range is supported by the 50% retracement of the April-July correction at $ 10.05
THETA / USD daily chart
In summary, it can be said that THETA is looking for a catalyst to break the resistance and clarify the prognoses. Without a daily close above $ 7.75, speculators should not consider allocating capital. That being said, the redeeming technical point for theta price is the existence of near support that includes the April descending trendline at $ 6.30 and then the 50-day SMA at $ 6.02 which adds confidence when the price congestion is overcome.