THETA technical analysis: Is a breakout to $1.1 coming?

Disclaimer: This is not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results.

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Market context

Looking at the weekly timeframe, the 0.9 level has historically been key support. Back in December 2020, it was the body closure level before the price entered its parabolic bull run. We came back down to this level in October 2022, using it as support throughout the bear market. Then, at the start of this year, we saw a 332% move from that same 0.9 level, and it was retested again during the week of August 5th with precision.

At this point, we're seeing some bearish candles form, and there's potential for sideways price action. Liquidity may leave some assets in the coming weeks, especially with limited movement from the majors, likely until we approach election time. This could impact altcoins, especially those that have taken hits since mid-year.

We can't expect much upside until capital flows into the majors, so the 0.9 level could be revisited, offering an opportunity to capitalize if you're looking to accumulate at that support.

On the daily timeframe, the key level to watch is $1.1, a psychological level around the dollar mark. This area has been significant in past price action, and if the price trades between 0.9 and $1.1, it would present an accumulation zone.

The asset has been trading weakly compared to the broader market, so whether this is an asset to hold depends on your individual conviction. However, if you're looking to accumulate more, the range between 0.9 and $1.1 is the zone to focus on.

Playbook

Key levels

• Support: 0.9
• Resistance: $1.1

Trading setup

If the price remains in the range between 0.9 and $1.1, this would be the accumulation zone to focus on. Breaking below 0.9 would require reassessment, but holding above it presents an opportunity for accumulation.

Risk management

A breakdown below 0.9 would invalidate the setup, but as long as the price holds this level, it offers a good risk-to-reward ratio for potential upside once liquidity returns to the market.

Cryptonary's take

The 0.9 support level has proven its significance historically, and with price testing this area again, it presents a strong opportunity for accumulation. Although the asset has underperformed compared to others in the market, the setup between 0.9 and $1.1 offers a favourable risk-to-reward ratio. The asset's next move will depend on liquidity and broader market conditions, particularly as we approach key moments in the macro landscape. This is not an asset we are currently invested in, but it's a member's request, and for those with conviction, it's a watch-and-accumulate play in this range.