The new short-term upward trend started after a considerable drop in the price, which found support at USD 3.85. The previous bullish force is dominant, so the recent decline is still a mere correction before resuming the trend.
As the cryptocurrency market recovers from its latest crash, the price of the Theta token jumps strongly to the upside. The launch of new NFTs (non-fungible tokens) contributes to its rise.
THETA is currently trading at around USD 5.16 and has accumulated a profit of 28.8% in the last week. Its trading volume is above USD 273.19 million, and its market capitalization is about USD 5.16 billion. It occupies 39th place in the cryptocurrency ranking, according to CoinGecko.
The Theta Network is a blockchain whose design allows user-driven streaming of audiovisual content and the display of various NFT collections. Regarding the latter, the launch of one about celebrity Katy Perry NFT seems to have sparked a new rally in the price.
The Technical Analysis of the Price of the Theta Token
The daily Theta chart shows that the price has risen dramatically over the last week. That has created an upward trend for the short term.
That new trend started after a significant drop in the value of the Theta token, which found support at USD 3.85. At that point, it began to reach higher lows, which indicated the weakness of sellers.
Resistance at USD 5.90 is hampering the price, for which there might be a correction from the current point. However, the dominance of the bullish force suggests that sales should quickly slow down, ushering in new momentum.
The Weekly Chart of the Value of the Theta Token
Over the last week, the Theta token has accumulated gains that are still irrelevant. The price has reached increasingly low lows in that period.
However, the previous bullish force is dominant in the Theta token market. For that reason, the decline of the price in the last few months is still a mere correction/break before resuming the upward trend.
The price of the Theta token has remained in a descending triangle during the bearish process. When that chart figure forms over resistance, it indicates a pullback of the trend. However, that is not the case with this crypto asset.
The chart of the Theta token indicates that this triangle is a sign of a simple break. Right now, the price could escape through the top, showing a resumption of the trend and a possible new all-time high. To confirm that, it must break through resistance at USD 8.18.
Before considering selling, the price must lose support at USD 3.85, which is currently an unlikely scenario.
However, it is only a matter of time before the value of the Theta token reaches and exceeds its previous all-time highs. Of course, everything will depend on how the crypto market, especially Bitcoin, behaves in the coming days/weeks. On other occasions, the pioneering cryptocurrency has led the way for altcoins to follow.
By Alexander Salazar
