- Theta price is consolidating in a bullish pennant, indicating a breakout soon.
- THETA bulls need to overcome two crucial supply barriers at $12.9 and $15 to set up a new high.
- A decisive close below $10.79 will invalidate the bullish outlook.
The Theta price is consolidating inside a technical formation that could propel the coin to record levels soon.
Theta price primed for upward move
The Theta price is consolidating in a bullish pennant that could catapult it by 45%.
This technical formation results from a sudden spike in the market value of THETA, known as a flag pole, which is followed by a consolidation that forms lower highs and higher lows. By connecting these swing points using trend lines, a pennant evolves.
A decisive close above the consolidation’s upper trend line at $12.33 will result in a 45% upswing to $17.78, which is the flag pole’s height added to the breakout point.
Despite confirming the start of a new uptrend, the Theta price will need to slice through two crucial supply barriers to have any chances of achieving the said target. The first resistance level is by the Momentum Reversal Indicator’s State Trend Resistance at $12.9, following this is the breakout line at $15, which approximately coincides with the previous all-time high.
Clearing these levels will provide THETA price a clear path to $17.78 and beyond if the bullish momentum persists.
THETA/USDT 4-hour chart
A spike in selling pressure that collapses the Theta price below the pennant’s lower trend line could catalyze the bears for more downside. However, a decisive close below $10.79, coinciding with the 61.8% Fibonacci retracement level, will invalidate the bullish outlook.
In such a scenario, THETA might find support on the MRI’s breakout line at $10.55 or the 50% Fibonacci retracement level at $9.75.
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