Theta (THETA/USD) Set to Go Higher after Retreat to Support

Theta (THETA/USD) Set to Go Higher after Retreat to Support

Posted Friday, August 13, 2021 by
Eric Nkando • 2 min read

Theta token has been one of the cryptocurrencies that has enjoyed a stellar rise in the past three weeks, since the industry turned bullish after the change in investor sentiment. The cryptocurrency has been making higher highs and higher lows as the bullish trend continues.

From our previous outlook, we projected that THETA/USD would hit a price level of 7.352. The crypto token was then trading at 6.897, with a strong bullish run underway. The prior projection was based on the potential upside for Theta, after news that the crypto token was available via the Metamask plug-in. The technical analysis also supported a further upside, since the token had already broken from a consolidation area.

Since our previous analysis, THETA/USD has gone on to hit the projected price at 7.352, surging even higher, up to 7.588. We booked profits at the projected level and are now seeking another buy entry in line with the bullish momentum.

Let’s have a technical look at THETA/USD in today’s trading

THETA/USD – A Technical Outlook

Theta 4-Hour Chart Analysis

From the 4-hour chart, it can be seen that after hitting a high of 7.588, Theta retreated to the minor support area around 6.54. Prices have bounced off from the support and are heading higher, in continuation with the bullish momentum.

Besides this, we can also see two bullish pin bars at the minor support of 6.54, which are currently supporting the uptick in THETA/USD. The formation of bullish pin bars, after the retreat of THETA/USD to the support level, signals rejection of a further price drop, which could usher in another bullish move.

THETA/USD Trade Idea

I recommend a buy trade in THETA/USD, from the current price bounce at the 6.54 support. I interpret the formation of the two bullish bars at the support as an attempt by bulls to reclaim the 7.588 high reached on August 11, with the price potentially hitting higher levels.

The bullish bars also formed at the level where the support meets the ascending trendline on the 4-hour chart. The double confirmations support a buy trade idea and increase the chances of entering a near-perfect trade.

For a buy trade, I will place my take profit at the previous high of 7.588, and further at a minor resistance around 7.850. However, I will watch key trends in the crypto market and Theta, and manage trades accordingly. Good Luck!

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