Under the influence of a support trendline, the price of the Theta coin has shown a sustained recovery over the past six weeks. From the last fluctuating low of $0.861, this bullish rally has recorded a 30% rally to reach the current price of $1,129. However, by analyzing the daily time frame chart, we have identified three main reasons why the price of Theta coins could see significant growth in the year 2023
.
Massive formation of reversal patterns in the theta price
On the daily chart, the price of the Theta coin shows the formation of an inverted head and shoulder. This model is one of the famous upward reversal models consisting of a long swing low known as the head, two shorter swing lows called shoulders and a key neckline
resistance.
At press time, the Theta count was trading at $1.13 and, using the support trendline above, the price could rise by 15% to reach $1.3. Therefore, a potential breakout from the trend line of the model’s resistance will project a sign of a trend reversal
.
Under ideal bullish conditions, this model configuration could push the Theta price up another 45% to reach the $1.9 threshold.
The relative strength index reflects the increase in buying pressure
While the Theta price action returns from the same highs of $1.3, the daily RSI is tilted with its rally of higher highs and higher lows. The rally shows that the underlying growth in purchasing momentum is increasing, indicating a greater chance of imminent recovery
.
A potential RSI crossover above the midline will further confirm buyers.
The daily EMAs signal the first signs of a bullish recovery
The increase in the Theta price has recently recovered the crucial daily EMAs (20, 50, 100 and 200).
In theory, a coin price above 100 and 200 EMA reflects a mood among market participants. In addition, if the price sees an occasional correction during the price rally, traders can use 20 and 50 for pullback opportunities
.
Theta Coin intraday price levels.
- Spot Price: $1.25
- Trend – Bearish
- Volatility — High
- Resistance levels: $1.3 and $1,487
- Support levels: $0.42 and $0.4