The rising trend in Bitcoin (BTC) and Ether (ETH) prices has increased the confidence of cryptocurrency investors. This trust has led many investors to show interest in projects with strong technological foundations.
Especially in the past week, investors have shown great interest in the decentralized Theta protocol, which provides resource sharing infrastructure for video broadcasts and offers rewards through support to the network. The price of THETA has increased by more than 350 percent in the last two months.
According to Cointelegraph Markets and TradingView data, THETA, whose rise has accelerated in the last week, gained 68 percent after hitting the lowest intraday level with $ 2.11241 on February 7 and reached an all-time high price of $ 3.55992 as of February 15.
Long standing resistance is broken
Daily chart of THETA / USDT pair. Source: TradingView
Since the announcement of the plan to interact with decentralized finance (DeFi) projects through Theta DEX, developed under the protocol, strong growth has been achieved.
On the other hand, the improvement of smart contract features on the blockchain and the support of unique tokens (Non-fungible token, NFT) produced for collecting purposes made the project more attractive.
As mentioned in the previous technical analysis, THETA created an ascending triangle model. While a reversal was observed in resistance tests, the bulls did not allow the price to drop below the 20-day exponential moving average (EMA) (at $ 2.15248).
We wrote that if the triangle pattern breaks up, “$ 3.56 will be targeted”. As of today, this view has become reality and the all-time record has arrived.
What does THETA do from this point on?
4-hour chart for THETA / USDT pair. Source: TradingView
The moving averages (MA) for THETA price are steadily rising. Likewise, the relative strength index (RSI) is approaching the overbought territory. These data alone show that the market is currently controlled by the bulls.
The 4-hour chart points to the rise realized by performing support tests at intervals after the rapid rise on February 8. After reaching the daily high as of February 14, testing was conducted around $ 3 where the 38.2% Fibonacci retracement level was calculated, and as of February 15, an upward jump came.
After the all-time record has been achieved, the possibility of a new correction remains on the table. The bulls will continue buying to get pricing above the 20-day exponential moving average (EMA) that appears at $ 3.19665 to continue the uptrend. In a possible decline, the problem does not seem to be a problem unless it falls below the 50-day simple moving average (SMA) calculated at $ 2.9.
In the downside scenario, the $ 2.66 level where the 61.8% Fibonacci retracement level is calculated will become critical. If the correction process is prolonged and this level is lost, this time the advantage will move to bears. Thus, the decline in price may deepen.
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