Theta Network Trying to Breakout of Consolidation; Is It Time for THETA to Rally?

23 Sep 2023 by Crypto Presale 2 min read

Theta Network is one cryptocurrency that the bears haven’t been kind to this year, despite starting the year on a strong foot. In January, THETA rallied from its 2022 low of $0.7 to reach a new 2023 high around the $1.3 mark, returning almost 100% gains to its holders. However, since March, the token has fallen by almost 50%, losing all of its former gains.

Currently, THETA has been consolidating, and it looks like the token is getting ready for a rally. Is it time to buy THETA? Let’s find out!

Technical Analysis

Daily Timeframe

Source: TradingView

In the last 24 hours, THETA’s price has increased by 7.3%, following a 0.6% fall in the last 30 days. Zooming out, the token has returned -18% YTD. This shows that overall, THETA is in a strong down market.

Looking at the daily chart, THETA’s price has been consolidating since mid-August, and the current candle is trying to break out of the accumulation phase, which can signal a change in trend. Also, the RSI is neutral, which means there is a balance of power between the bears and the bulls. A power shift in favour of the buyers can see the token breakout of the consolidation zone, and the price will rally. In contrast, if the momentum shifts in favour of the sellers, THETA might see a break below the consolidation zone and price keep falling. Currently, the 50-day EMA and the 200-day EMA are trading above the current market price, which shows that THETA is still in a downtrend.

4 Hour Timeframe

Source: TradingView

In the lower timeframe, the trend is different. The bulls are getting stronger and trying to push the price up. Currently, THETA is trading above the 50-day EMA and trying to break above the 200-day EMA. Also, the RSI is currently at 62.75%, which means the buyers are dominant on this timeframe. If this buying momentum is sustained, we might see THETA break out of the consolidation phase and price rally to the next key level around $0.65.

Is It Time for THETA to Rally?

Recently, Theta Labs announced that they have secured U.S. Patent 11,763,332 for its pioneering "Edge Computing Platform supported by Smart Contract-enabled Blockchain Network." It combines edge computing with smart contract security and rapid crypto transaction settlements, offering promising prospects for Theta's future in the blockchain industry.

This news, combined with favourable economic factors, has the potential to boost investor confidence in THETA and potentially trigger a trend reversal.

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