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THETA price must overcome this crucial hurdle to advance towards $3

  • THETA price presents an ambiguous outlook as it trades between two critical barriers without providing any strong signal of where it is headed next.
  • A successful breach of the overhead resistance could propel the coin up to 40%, while breaking through the underlying support may be catastrophic for the bulls.

THETA price has rallied more than 200% in less than a month. While this altcoin seems to have reached overbought territory, its fate depends on two critical hurdles. 

THETA price sits at a make or break point

The nineteenth-largest cryptocurrency by market capitalization appears to be consolidating within a symmetrical triangle that is getting narrower over time. Breaking out of this pattern could go either way, making the $2.30 resistance and the $2.00 support significant interest areas.  

If the bulls manage to push Theta price above the $2.30 level, a new uptrend may begin. Further buying pressure will likely result in a 40% upswing towards $3.  

Theta price US dollar chart

THETA/USDT 1-hour chart

Nonetheless, IntoTheBlock's In/Out of the Money Around Price (IOMAP) model shows that breaking out in a positive direction will not be easy. Based on this on-chain metric, the $2.30 area is a significant hurdle for the bulls to overcome. Here, more than 70 addresses had previously purchased 216,000 THETA. 

Hence, only an hourly candlestick close above this price hurdle would confirm a bullish breakout from the symmetrical triangle pattern.

Theta IOMAP

THETA IOMAP 

On the flip side, the IOMAP cohorts show one crucial demand barrier below the current price at $2.05. Roughly 97,000 THETA were purchased at this level by 78 addresses. 

Given the significance of this support wall, an hourly candlestick close below it could spell disaster for Theta, pushing its price to $1.70.

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FXStreet Team

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

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