November 1, 2023
The Theta coin price has experienced a significant uptick in recent weeks, rising from $0.564 to its current trading price of $0.745, marking a 32% increase. This surge in buying interest has positioned the coin to challenge the upper trendline of a longstanding falling wedge pattern, indicating a potential continuation of its bullish momentum.
However, the Theta price may face intense supply at $0.85, aligned with the downsloping trendline. A bearish reversal from this resistance trendline could trigger a 26% drop in price. The intraday trading volume in Theta is $105.5 Million, indicating a 505% gain.
Over the past 16 months, the THETA price has been on a persistent downtrend, with the formation of a falling wedge pattern. This pattern has had a significant impact on market behavior, with the price rebounding twice from both the upper and lower trendlines.
Earlier today, the Theta price attempted to break through the overhead resistance trendline, jumping 17.67% amid a surge in trading volume. However, the coin failed to maintain these gains, leading to a long-wick rejection candle on the daily chart.
This supply pressure at crucial resistance levels indicates that sellers are continuing to defend higher prices, which could trigger a significant correction in the near term. If the price closes below today's low of $0.722, the gains made in October may be rapidly erased, pulling the altcoin back to the $0.56 region.
The near-term outlook for Theta ranges from sideways to bearish, given the market volatility and overhead supply pressures. However, the converging nature of the pattern's trendlines suggests that bearish momentum may be exhausted, providing an opportunity for buyers to retake control of the trend. A successful bullish breakout above the upper trendline would serve as an early indication of a trend reversal and could propel the coin towards the $1.236 level, representing a remarkable 66% growth from its current position.
In summary, while the Theta coin price has experienced a significant increase in recent weeks, the presence of overhead supply and the potential for a bearish reversal indicate the possibility of a correction in the near term. Traders should closely monitor the price action and consider the potential risks before making any investment decisions.