THETA Price Analysis: Theta Network’s V-shaped Recovery Far From Over

Last Updated August 6th 2021
2 Min Read
  • THETA price breaks away from other altcoins to chart an impressive trajectory toward $10.
  • Multiple buy signals on the daily chart hint at the V-shaped recovery continuity.
  • The TD Sequential indicator presents a sell signal on the 3-hour chart that may hinder the bullish outlook to $10.

Theta Network significantly extended the bullish leg on Thursday to close the day around $7. This recovery occurred with Bitcoin’s swing above $40,000 and Ethereum’s uptick to a two-month high past $2,800. As reported, Ripple tried to close the gap to $0.75 after firmly holding above support at $0.7.

Meanwhile, THETA is trading nearly 15% higher in the last 24 hours, bringing the weekly gains tally to 16%, according to the live price data by CoinGecko. The token attracted a 709 million trading volume in the same period and boasts $6.9 billion of market capitalization.

Theta Network is currently the 17th largest crypto asset after making it into the top 20. This implies that investors are paying more attention to the token amid speculation of an ultimate rally beyond $10.

THETA Price V-shaped Recovery

The daily chart illustrates a V-shaped recovery that came into the picture following the paralyzing selloffs in June and July. A V-shaped recovery comes into play when an asset experiences an extended dip but after securing robust support. Amid the oversold conditions, bulls find an opportunity to assert their pressure on the price. A sharp recovery emerges, as shown on THETA’s chart.

THETA/USD daily chart

 THETA/USD daily chart 080621

The V-shaped recovery proceeds until the uptrend’s momentum gets exhausted or massive barriers stand in the way. As for Theta Network, the resistance at $7 has been reinforced by the 200 Simple Moving Average (SMA). A break above this level could trigger more gains as the V-shaped price action stretches toward $10.

Realize that the Moving Average Convergence Divergence (MACD) has a bullish impulse sustained since a buy signal appeared on July 22. With the MACD moving above the mean line, the odds for another upswing will soar. Hence, recovery may have taken a hiatus at $7 and can carry on to $10.

What Could Invalidate THETA’s Bid For $10?

The TD Sequential indicator presented a sell signal on Theta Network’s three-hour chart, adding credence to the pessimistic outlook. The bearish formation developed as a green nine candlestick anticipating a one to four candlesticks correction.

THETA/USD three-hour chart

 THETA/USD 3-hour chart 080621

A red two candlestick trading below a preceding red one candle could serve as confirmation that Theta Network is poised to drop further. Note that support is anticipated the 50-day SMA on the daily chart while if push comes to shove, the buyer congestion at $5 will come in handy.

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