Theta (THETA/USD) Challenged at 8.0 – Buy a Retreat to Support at 6.54 - Forex News by FX Leaders
Theta (THETA/USD) Challenged at 8.0 - Buy a Retreat to Support at 6.54

Theta (THETA/USD) Challenged at 8.0 – Buy a Retreat to Support at 6.54

Posted Wednesday, August 25, 2021 by
Eric Nkando • 2 min read

After posting a strong bullish run since July, Theta buyers seem to have run out of steam. The crypto token is now consolidating, after rising to a high of about 8.3 on August 21, following a break from a resistance area, which has now turned into support.

At the time of writing, THETA/USD was down 9.97% in the previous 24 hours, and still retreating, after hitting a speed bump just above 8.0. The crypto token was exchanging hands at around 71.3, with the 6.54 support appearing to be the likeliest target.

THETA/USD Market Recap

Looking at the last two weeks of trading, THETA/USD illustrated a strong bullish scenario. The crypto token surged quickly after a retreat to the 6.54 support on August 21, to hit a high of around 8.1 the same day. This suggests that the bullish momentum for THETA/USD is far from over, and a further upside is possible.

In our previous outlook, we pointed at a price level of around 7.588 and 7.850, after THETA/USD broke past the consolidation area. THETA/USD reached the targeted areas comfortably, and we project further upsides from the 6.54 support area.

THETA/USD and NFT

Theta claims to be the crypto token that will deliver the next-generation video. Now, with the growing popularity of non-fungible tokens (NFT), the crypto token could attract more users, fueling it towards exponential growth.

On Monday, Visa was the latest entrant into the NFT craze, after purchasing “CryptoPunk” for almost $150,000. The NFT craze saw sales topping $2 billion in the first quarter of this year, which is at least 20 times higher than the volumes in the previous quarter.

Having set its sights on video delivery, Theta token is expected to benefit immensely from the NFT growth. The developers of the crypto token already own Theta Drop, which is an NFT marketplace for buying and selling digital assets. Although the marketplace is yet to be launched fully, it speaks volumes on the potential for Theta. Potentially, the crypto token could become mainstream, which supports a bullish view.

Let have a look at THETA/USD trading lately:

THETA/USD – A Technical Outlook

Theta Challenged at 8.0. Buy a Retreat to Support at 6.54

Theta 4-Hour Chart Analysis

From the 4-hour chart above, it can be seen that THETA/USD is retreating towards the 6.54 support. The pair is also trading below the long-range trendline. However, we do not consider this as a bearish scenario, but merely an extension of the ongoing consolidation. We, therefore, expect THETA/USD to break from the consolidation area and surge upwards, in line with the bullish momentum.

THETA/USD Trade Idea

I consider it more prudent to enter a buy on THETA/USD after a further retreat to the support at 6.54. The area has shown itself to be a major support, with THETA/USD failing to break below it several times. Entering a buy at the 6.54 level will increase the chances of a more profitable trade with lower risks.

A buy trade in THETA/USD should target the area around 8.1 as the take profit point. Further upsides are possible, with 8.4 being the next optimal take profit point.

On the flipside, a break below 6.54 will expose THETA/USD to the area around 5.55. However, I will only seek buy entries, as I consider THETA/USD to have a strong bull case scenario in the medium and long-term. Happy trading!

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