THETA Technical Analysis: Hidden RSI Divergence Hints the Formation of Double Bottom Pattern
THETA coin price action shows recovery signs at the $3.8 support with the double bottom pattern formation, is this the end of the correction phase? Theta, a blockchain-powered network, is designed specifically to stream video. Theta's main net functions as a decentralized network in which users can share bandwidth and computing resources on a peer-to-peer basis. Theta network has its own unique crypto token THETA, which is used to perform different governance functions in the network. The network is able to count Google, Binance, Sony Europe, and Samsung as Enterprise validators. In addition to the Guardian network that includes a number of community-run guardian nodes. Let us move ahead to read about Theta technical analysis.
Past Performance of THETA
The 2021 Christmas recovery in THETA coin faced intense selling pressure from the $5.7 resistance. The coin price was rejected from this overhead resistance with an evening star candle and plunged back to $3.8 bottom support. This 30% discount in Theta coin could lure more investors, indicating a high possibility of bullish reversal. THETA/USD Daily Chart
THETA Technical Analysis
The THETA coin price has been hovering above the $3.8 support for almost two weeks, trying to obtain sufficient buying pressure. The technical chart shows several lower price rejection candles at $3.8, projecting the pressure of strong demand. The recent jump in the coin price is challenging the first defense line of 20-day EMA. However, the overall trend for this coin is bearish as the price is still trading below the (50, 100, and 200) EMA lines in the daily chart. The RSI indicator at 45% shows the slope is steadily approaching the central line, with the hope of bullish crossover. Moreover, an evident bullish divergence in the RSI chart indicates the increasing strength on buyers' side. The MACD indicator shows bullish crossover among the MACD and signal lines after the recent spike with the coin price. Moreover, the histogram has started forming rising green bars, projecting the rising bullish momentum. Therefore, the technical indicators reflect a rise in underlying bullishness projecting a possible bullish reversal from the $3.8 support. However, the presence of several resistances along the way might delay this bullish rally.
The THETA coin price shows its second swing low at the $3.8 support in the two last months. If the price manages to bounce back from this level, the technical chart will reveal the formation of a double bottom pattern. The neckline for this pattern is at the $5.7 mark, and a bullish breakout from this resistance would provide a better confirmation for a bullish rally. The THETA coin price chart suggests the next support levels at $3.8 and $3.47. And, in case of a bullish breakout, the price can find opposition at 20-day EMA and $4.6 horizontal level. At the time of writing, a rise in bearish sentiment is evident by the "SELL" signal of TradingView Technical analysis.
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