The THETA token has experienced a marginal increase in price of 4.14% over the past 24 hours, leading cryptocurrency enthusiasts to analyze the potential pathways for the token in the near future. Based on technical analysis, THETA’s price has been trading within a descending channel on a daily timeframe for the past several months, with its value persistently staying below the 200-day Exponential Moving Average (EMA).
Investors’ sentiments toward the token appear to be influenced by bearish dynamics. Despite the presence of a descending flag pattern, often considered a precursor to a bull trend, this bullish indicator may be insufficient to initiate a change in trend for THETA’s price. In the past, the price has consistently faced rejections from the 100-day EMA, with major resistance laying at the 200-day EMA.
In the shorter term, THETA’s price is currently trading within a supply zone. Its movements are precise and occur within a consolidation channel, with oscillators recently breaking this consolidation. This development could indicate that the price may soon follow suit.
*Source: THETA/USDT by TradingView*
The THETA token began its upward trend in early January, with a net gain of over 54% in total value by the subsequent months. It reached its most recent high near $1.30; however, THETA was unable to break above the 200 EMA despite multiple attempts.
In early March, the Theta Network’s price fell by more than 21%, creating a lower low after dipping below the trendline. This drop contrasted with a bullish sentiment that prevailed after forming a hammer pattern around the $0.85 support line. With the support of buyers, the Theta Network subsequently experienced a bullish rally amounting to a 30% gain.
*Source: THETA/USDT by TradingView*
Technical analysis of THETA’s price through the Relative Strength Index (RSI) on the 4-hour timeframe has revealed that the token is currently trading near its previous resistance level. The RSI line is positioned around 60.49 points, while the 14 Simple Moving Average (SMA) is hovering near the median line at 46.40 points. A bearish decline appears to be imminent for the RSI in the near future.
The Stochastic RSI is pointing toward a possible bearish reversal from the overbought levels, with the %K line in the early stage of negative interception. The current value of the Stochastic RSI is 98.49 points.
**Conclusion**
At present, the THETA price offers a favorable opportunity to capitalize on predictable consolidation movements observed within the 4-hour timeframe. As it encounters resistance from the 100-day EMA, a successful change in trend could result in a bearish correction of up to 6% within days, as projected in the shorter timeframe.
**Technical levels**
* Support: $0.939
* Resistance: $1.000
**Disclaimer**
The views and opinions stated in this article, or by any people named herein, are for informational purposes only and do not constitute financial, investment, or other advice. Prospective investors in cryptocurrency assets should understand the associated risks of financial loss.
