THETA Reached Its Demand Zone: Can Bulls Defy Selloff Ahead?

• Theta Network (THETA) is displaying a falling wedge pattern on the charts.
• Buyers are accumulating and eyeing a significant rebound.

The Theta Network (THETA) price has reverted from the demand zone of $1.30 and showed a notable pullback over 18% in the last three trading sessions. Moreover, the token was in a severe downtrend and looks oversold on the charts.

Amidst the severe correction, the buyers have defied the selloff and signs of pullback was noted this week. A falling wedge pattern was observed and the token will likely breach the downward sloping trendline hurdle of $2 mark soon.

Its technicals are highlighting that sellers have started covering their positions and the token might try to reclaim the 200 day EMA mark shortly. If the token succeeds to break and close above the $2 mark, it might spread the bullish wave toward the $2.70 followed by the $3 mark soon.

At press time, THETA price was $1.55 with an intraday surge of 1.66%, reflecting buying momentum on the charts. It has a monthly return ratio of -33.20% and 66.200% yearly, reflecting a downtrend.

The pair of THETA/BTC was trading at 0.0000240 BTC, and the market cap is $1.55 Billion. Analysts are neutral and suggest that THETA may break out and retain the mark of $3.

Is THETA Ready for a Reversal: Here’s an Outlook?

The daily charts of Theta Network (THETA) token shows signs of a reversal. A major doji candlestick was seen at the demand zone near $1.20. Moreover, the technicals suggest that the correction phase has ended and that it might spread the bullish lead toward the $2 mark soon.

Source: TradingView

Its price action highlights follow on selling pressure and made a falling wedge . Meanwhile, the bearish wave has ended and the token might see a pullback soon.

However, the trading volume remained flat and surged over 5.30% to $19 Million, revealing the investors are still waiting for clarity and are in a dilemma.

The RSI curve rebounded from the oversold region and signifies a positive crossover, which conveys that the bullish rally is imminent.

Notably, the token was ranked at 63 and has a total supply value of 999.94 million, while the volume to market cap ratio is 0.0122 and the fully diluted market cap is $1.55 Billion.

Moreover, the MACD indicator started to form green bars on the histogram and displayed a bullish outlook ahead.

THETA’s Social Metrics Overview

Social dominance data revealed a decline and dropped over 32% to 0.038% mark this week, highlighting the decrease in the users’ engagement on the social media platforms.

Source: Santiment

Notably, the development activity data revealed a drop and stayed below the midline region noted at 0.024, giving a negative outlook.

A tweet by @Decilizer said in his post, that Theta Network (THETA) has rebounded from its crucial support of $1.20 and might show an impressive move ahead.

$THETA has made an impressive move, confirming the vital support level at $1.25. Our expectations are high as it continues its upward journey towards our next target of $3.50. Hope Bitcoin maintains its positive trend.
In past occurrences, we've observed a 580% profit from it. pic.twitter.com/rv7lz4B19V

— Decilizer (@decilizer) June 23, 2024

Source: X

Futures OI Data Highlighted Long Buildup Activity

The Futures Open interest data highlights buyer accumulation and conveyed a bullish outlook.

The open interest surged over 7.01% to $22.91 Million revealing fresh long additions in the last 24 hours, signifying a positive outlook.

The immediate support levels for Theta Network token are $1.20 and $1.00 whereas the key upside hurdle is around $2.00, followed by $2.80

Could THETA Reveal a Pullback Ahead?

The Theta token price stayed below the key moving averages and directed underperformance for the past trading sessions. Its technicals are revealing the lower low swings and has regressed to the demand zone.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.