TradeCityPro | Theta : Navigating Deep Corrections

há 19 horas

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In this analysis, I will examine Theta in both the weekly and daily timeframes, providing a detailed breakdown of its market dynamics and critical levels.

📅 Weekly Timeframe: Price Reaches Supply Zone Again
In the weekly timeframe, after forming a bottom structure around the $0.58 level, Theta initiated its first bullish wave, reaching the supply zone between $3.251 and $4.184 for the first time in this uptrend cycle.

🔍 Following the initial test of this resistance, the price corrected and established a higher low at $1.009, reinforcing its support. With the breakout above $1.654, the next bullish wave towards the supply zone began.

🚀 Currently, the price has been rejected from this supply zone with significant selling volume and has pulled back to $1.654. Sustained bullish momentum, characterized by sharp upward movements and dominant green candles, will require a breakout and consolidation above the supply zone.

✅ Upon clearing this resistance, Theta could rally towards the ATH at $12.978, with potential for further targets and a new ATH if $12.978 is surpassed.

🔽 A break below RSI 50 may lead to continued corrections, potentially revisiting $1.009. Despite this, as long as the price holds above $1.009, the market outlook remains bullish. Confirmation of a trend reversal would occur with a breakdown of this level, targeting the key $0.58 support, which remains a critical demand zone.

📈 RSI support at 50 and renewed buying volume could propel the price back towards the supply zone with stronger momentum.

📅 Daily Timeframe: Deep Correction in Progress
On the daily chart, the most recent bullish wave is visible in greater detail. Applying a Fibonacci Retracement, the price initially corrected to the 0.382 level, followed by a deeper correction after breaking the $2.257 low, extending to the 0.618 Fibonacci level.

📉 If the correction continues, the final retracement level, 0.786 Fibonacci, aligns with the $1.628 support, forming a Potential Reversal Zone (PRZ). A failure to hold $1.628 could see the price drop to $1.009, as noted in the weekly analysis.
Currently, bearish volume is increasing, signaling potential challenges for a bullish recovery in the short term.

🔼 A bullish breakout would require strong buying volume, but opening long positions near the supply zone carries significant risk. Instead, consider entering positions at lower levels where price action provides a clear trigger to reduce stress as the price approaches the supply zone.



📝 Final Thoughts

This analysis reflects our opinions and is not financial advice.

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