- Theta price sees best 5-day gain since March 11th as the cryptocurrency explodes from the 78.6% Fibonacci retracement.
- THETA maintains the strategically important 50-week Simple Moving Average (SMA) and maintains the upward trend from March 2020.
- Dominant resistance starts at $ 7.00, suggesting the easy money has been made.
Theta price printed a new correction low on July 20, breaking below the May 19 low of $ 3.70 and the 78.6% retracement level of $ 3.54 before moving 100% to yesterday’s high recovered. The convergence of major levels of resistance prevented the rally from extending and revealed the struggles for the further development of THETA. With the resistance company and the proximity, easy money was made with the cryptocurrency.
Theta price is taking the storm to propel the cryptocurrency market up
Theta price corrected nearly 80% from its April high of $ 16.61, reversing 78.6% of the March 2020 spike, and seeing the most oversold daily Relative Strength Index (RSI) level since November 2018.
The THETA response to the remarkable drop was a successful test of the May 19 crash, followed by a 68% rally on the 21st THETA.
Yesterday the THETA rally ended in an expansive reversal after the theta price encountered overwhelming resistance. The resistance combines the 50-day simple moving average (SMA) at $ 6.59, the 200-day SMA at $ 6.98, the April descending trendline at $ 7.56, and a price range matching the low starting April 23 at $ 7.16. The weight of the resistance is compounded by the triggering of a retrograde death cross pattern on July 23rd.
With the presence of the THETA price barrier, the Theta price faces a new challenge that will dictate a consolidation phase to remove the price compression of the market-leading 100% profit, with the specific aim of creating the technical basis to run the short THETA- Turn rally to sustainable progress.
Support points are the June 22nd low of $ 5.21 and the May 23rd low of $ 4.54. Failure to control the pullback to the May 23rd low increases the likelihood that the THETA rally was a dead hop and another corrective low could occur in the future.
Based on the impulsiveness of the rally on a historical basis and relative to the weaker rebounds during the April-June correction, the theta price is not currently threatened by a new low.
THETA / USD daily chart
To change the cautious short-term outlook, theta price needs to close above $ 7.75 for the day. This would signal that the altcoin is positioned to extend the leap into a foray and target another resistance area of $ 9.70 to $ 10.90, which is a 40% return to the upper bound of the range.
The theta price rally of over 100% from the July low changed the entire price structure. During the three month correction, it slightly outpaced gains from previous up moves, demonstrating the importance of impulsiveness and the introduction of a trend change. In the short term, THETA encounters a technical challenge between $ 7.10 and $ 7.75. Hence, investors will need to be patient over the coming days and weeks to see the next phase of opportunity come true.